Market Economy - Explained
What is a Market Economy?
Written by Jason Gordon
Updated at March 26th, 2023
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What is a Market Economy?
A market economy is an economic system driven by the decisions of individuals or businesses within the economy to purchase goods or services.
A market is made up of buyers and sellers of goods or services.
Private firms or individuals provide the means of production and the supply of goods and services.
Demand is based upon individual consumption and the ability to purchase the goods or services (income).
Income is based upon the ability to translate resources into items of value to transfer to others in the market.
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