Why is a competitive market good for consumers?

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A competitive market promotes innovation and low prices, and consumers get what they demand.
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Competitive markets create monopolies, which make consumers lots of money.
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All of these
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Competitive markets produce lots of regulations, which helps save everyone money.
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1 answer

The correct answer is: A competitive market promotes innovation and low prices, and consumers get what they demand.

In a competitive market, businesses strive to attract customers by offering better quality products, lower prices, and innovative solutions. This results in more choices and better services for consumers, leading to increased satisfaction and welfare. The other options mentioned, such as monopolies and excessive regulations, do not reflect the benefits typically associated with competitive markets.