Market Economy

Market Economy is a type of market where individuals and private firms make the main decision about the market supply and demands. It does not mean that the government has no significant influence on market economy type of market, it is basically based on the fact that individuals and private firms makes the majority decisions. The production firms provide the market with good within a reasonable price range and the individuals who make the purchases determines how they want to spend their money on the market there for both sided of the production firms and the individual purchaser have the ability to influence the market with their decisions. Therefore the price, highest profit, least costly yield of the market is produced by the private firms. Labor and property ownership are regulated by the individuals.