PLEASE HELP Why did the economies of the former East German areas collapse during reunification? A) The government bought factories and businesses, reducing employment. B) East German businesses were unable to compete in the free-market economy. C) After unification, Germany chose to keep the east and west economies separated. D) High economic growth led to a shortage of workers.

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.