According to laissez-faire economists, what is the benefit of a free market? A. Under a free market, the population would continue to boom, creating rapid economic growth. B. A free market would encourage government economic policies to try to reduce poverty. C. As production increased, the supply of goods would also increase and prices would drop so more people could afford goods. D. In a free market, capitalists would reinvest in new businesses, which would create new jobs and raise the price of goods.
History · High School · Mon Jan 18 2021
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C. As production increased, the supply of goods would also increase and prices would drop so more people could afford goods.
Laissez-faire economists believe that in a free market, increased production leads to a larger supply of goods. With a surplus of goods, competition among sellers tends to drive prices down, making goods more affordable and accessible to a larger portion of the population. This process is thought to benefit consumers by providing a wider array of goods at more affordable prices.