Economics Market Economy Questions
A market economy is an economic system in which the production, distribution, and pricing of goods and services are determined by the interactions of buyers and sellers in a competitive market. In a market economy, individuals and businesses have the freedom to make their own economic decisions, such as what to produce, how much to produce, and at what price to sell. The forces of supply and demand play a crucial role in determining the allocation of resources and the prices of goods and services in a market economy.