Question

Fantasy of Lights is a business that makes and sells Christmas lights. Fantasy of Lights makes over 6,000,000 twinkle lights each year. Fantasy of Lights sells their Christmas lights for a price set by the demand of the consumer. What economic system is this?

Answer 1

Answer:

Market Economy

Explanation:

A market economy is a system where the laws of supply and those of demand direct the production of goods and services. 1  Supply includes natural resources, capital, and labor. Demand includes purchases by consumers, businesses, and the government. Businesses sell their wares at the highest price consumers will pay.