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Which of the following is not an example of one of the four main advantages of prices in a free market economy?

A. Consumers are willing to pay a higher price for a good, so producers manufacture more of the good.
B. The price of a good can be quickly increased in response to excess demand.
C. Producers make a greater profit when the retail price of an item is lowered.
D. The price of an item is low, so consumers see it as a signal to buy the item.



Answer :

GinnyAnswer

Final answer:

The four advantages of prices in a free market economy are explained.


Explanation:

The four main advantages of prices in a free market economy are:

  1. Consumers are willing to pay a higher price for a good, so producers manufacture more of the good, which leads to increased production based on consumer demand.
  2. The price of a good can be quickly increased in response to excess demand, allowing market forces to balance supply and demand efficiently.
  3. Producers make a greater profit when the retail price of an item is lowered, as lower prices can stimulate demand and increase overall sales.
  4. The price of an item is low, so consumers see it as a signal to buy the item, indicating affordability and encouraging consumer purchases.

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