Economics Market Economy Questions
A market economy allocates resources through the forces of supply and demand. In this system, individuals and businesses make decisions based on their own self-interests, leading to the production and consumption of goods and services. Prices are determined by the interaction of buyers and sellers in the market, and resources are allocated to those who are willing and able to pay for them. This process of voluntary exchange and competition helps to efficiently allocate resources based on consumer preferences and market signals.