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Consumers in a country are angry because only expensive laptop computers are available. Where does this problem occur if a country has a free enterprise system?

1) In the manufacturing sector
2) In the retail sector
3) In the service sector
4) In the government sector

User Mahouk
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1 Answer

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Final answer:

The problem of only expensive laptops being available in a free enterprise system occurs in the retail sector, where consumer interaction is most direct and where product availability and pricing are determined.

Step-by-step explanation:

If consumers in a country with a free enterprise system are only able to find expensive laptop computers, the crux of the problem lies in the retail sector. In a free enterprise system, the manufacturing, service, and government sectors do play roles, but the retail sector directly interacts with consumers, presenting the products that are available for purchase. It is here where pricing and availability are most prominently felt by the consumers.

If laptops are expensive, it could be due to a lack of competition, high costs passed down from manufacturers, or insufficient retail options. However, the free market is dynamic and often self-correcting. When demand is not met at current price levels, this signals entrepreneurs and competitors to provide better or less expensive products. This responsiveness of the market encourages innovation and allows for adjustments that can lead to some companies thriving while others may fail for a variety of reasons including not meeting the needs and desires of consumers.

User Sherin
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