Why does the free enterprise system help keep prices low?(1 point)

Question

Responses

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.
The governmental control of the price ensures that it remains reasonable.

Consumers must meet producer expectations for the price or they will be unable to make purchases.

Answer 1

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 drives producers to offer goods and services at lower prices to attract consumers, thus helping to keep prices low.