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- A market economy works by relying on the interactions of consumers and businesses123. Here's how it functions:
- Supply and demand determine what goods and services are available and at what price12.
- Voluntary exchange drives production2.
- Market economies are not controlled by a central authority2.
- Most market economies function as a mixed economy, balancing free-market forces with necessary governmental controls4.
Learn more:✕This summary was generated using AI based on multiple online sources. To view the original source information, use the "Learn more" links.A market economy is a system in which production decisions and the prices of goods and services are guided primarily by the interactions of consumers and businesses. That is, the law of supply and demand, not a central government's policy, is allowed to determine what is available and at what price.www.investopedia.com/terms/m/marketeconomy.aspA market economy is an economic system where two forces, known as supply and demand, direct the production of goods and services. Market economies are not controlled by a central authority (like a government) and are instead based on voluntary exchange. Market economies rely on the interplay between supply and demand to function.www.nationalgeographic.org/encyclopedia/market-…A market economy is a dynamic way that a country’s people and businesses make choices about what to buy and sell. Instead of a central group making all the decisions, the things that people want to buy and the things businesses want to sell work together to set prices and decide what gets made.www.supermoney.com/encyclopedia/market-econo…How market economies work Most market economies function as a mixed economy, where there is a balance between free-market forces and necessary governmental controls. Such governmental controls may include the control of illegal goods, as well as subsidies for public goods, such as transportation and education.www.indeed.com/career-advice/career-developme… - People also ask
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