Question

Brian has just finished college. He wants to set up a small business to make and sell fireworks. He registers his company and acquires a license from the government. He finds that most of his competitors are selling fireworks at an extremely low price. He would like to make more money, so he decides to innovate and develop better fireworks. He sells his fireworks at a higher price, and they are a huge hit with the customers. After a few years, he earns enough profit to set up a bigger fireworks factory that complies with the government’s health and safety regulations. He even starts exporting fireworks overseas. Which type of economy does this scenario describe?

Answer 1

free-market economy

Answer 2

Brian has just finished college. He wants to set up a small business to make and sell fireworks. He registers his company and acquires a license from the government. He finds that most of his competitors are selling fireworks at an extremely low price. He would like to make more money, so he decides to innovate and develop better fireworks. He sells his fireworks at a higher price, and they are a huge hit with the customers. After a few years, he earns enough profit to set up a bigger fireworks factory that complies with the government’s health and safety regulations. He even starts exporting fireworks overseas.

Which type of economy does this scenario describe?

• Okay, so, I've seen multiple people saying the correct answer is

• NOT E. market economy

But I just took the test and its incorrect

Step-by-step explanation:

Here's a picture showing it's incorrect

Honestly, I really wish I knew what the answer was but I've tried finding it but I'm too tired now.

So, even though it's not showing the correct answer, I hope this helps eliminate one of the answers.

Again NOT E. Market