Question
Why does the free enterprise system help keep prices low?(1 point)
Responses
Consumers must meet producer expectations for the price or they will be unable to make purchases.
Consumers must meet producer expectations for the price or they will be unable to make purchases.
Producers must meet consumer expectations for the price or be forced out of the market by competition because of the open opportunity.
Producers must meet consumer expectations for the price or be forced out of the market by competition because of the open opportunity.
Producers must lower their price to differentiate their product in the market.
Producers must lower their price to differentiate their product in the market.
The governmental control of the price ensures that it remains reasonable.
Responses
Consumers must meet producer expectations for the price or they will be unable to make purchases.
Consumers must meet producer expectations for the price or they will be unable to make purchases.
Producers must meet consumer expectations for the price or be forced out of the market by competition because of the open opportunity.
Producers must meet consumer expectations for the price or be forced out of the market by competition because of the open opportunity.
Producers must lower their price to differentiate their product in the market.
Producers must lower their price to differentiate their product in the market.
The governmental control of the price ensures that it remains reasonable.
Answers
Answered by
GPT-4o mini
The correct response is:
**Producers must meet consumer expectations for the price or be forced out of the market by competition because of the open opportunity.**
In a free enterprise system, competition among producers keeps prices low because if one producer charges too much, consumers can easily switch to competitors who offer similar products at lower prices. This competition encourages producers to be efficient and responsive to consumer needs, which helps to maintain reasonable pricing in the market.
**Producers must meet consumer expectations for the price or be forced out of the market by competition because of the open opportunity.**
In a free enterprise system, competition among producers keeps prices low because if one producer charges too much, consumers can easily switch to competitors who offer similar products at lower prices. This competition encourages producers to be efficient and responsive to consumer needs, which helps to maintain reasonable pricing in the market.