Which of the following is not an example of one of the four main advantages of prices in a free market economy? The price of an
item is low, so consumers see it as a signal to buy the item. Producers make a greater profit when the retail price of an item is lowered. The price of a good can be quickly increased in response to excess demand. Consumers are willing to pay a higher price for a good, so producers manufacture more of the good.
The answer is: Producers make a greater profit when the retail price of an item is lowered.
According to the free market economy when the price of a product or good is lowered the producers make a lower profit.
The main advantages of the free market economy are the contribution to political, civil and economic freedom. The insurance of a competitive market. The consumer's protagonism and the supply/demand competition that ensure the best goods at the lower price.
