Answer:
The economies of the former East German areas collapsed during reunification because:
B) East German businesses were unable to compete in the free-market economy.
Explanation:
1n 1990 following German reunification, the government of East Germany handed over the state-owned companies to individuals, especially workers. They were unable to compete under the free-market system offered by the reunified Germany. They had grown used to their state-controlled command economic system where goods and services were produced and distributed according to socialist and communist philosophies. A a free-market economy, the market forces of demand and supply rule without government interference unlike in a command economy, where government dictate what is to be produced and even what will be demanded by the citizens.
