Question

Which economic system is being described below?

In Country B, business owners decide what to produce, how much to produce, and who to produce for. The CEO of Tarheella Audio, one of the
leading audio equipment producers in the country, recently decided to increase production levels of the company's newest MP3 player model,
and at the same time decrease production levels of their most popular CD player. The reason for the emphasis on MP3 players is that demand
for CD players has decreased dramatically as MP3 technology has taken over the market. Simply put, there is more profit to be made in the
MP3 market.
A.
Market
B.
Mixed
С.
Traditional
D.
Command

Answer 1

Answer: A)

Step-by-step explanation:

This is the type of the Market economic system because the CEO of Tarheella Audio is wanting to sell the MP3 players which are popular at that moment and in that way he wants to decrease the production level of their most popular CD player because if people will buy MP3 player then they will not need the CD player. This is also the type of electronic evolution where one product is replacing the other one.