What are the characteristics of the market economy?

The market economy is one in which most financial decisions are taken by both citizens of the country and businesses that take care of these citizens. One of the main characteristics of the market economy is the fact that the amount of production of goods and the prices of these goods are determined by the laws of supply and demand. In general, market economies are generally left to development without much intervention from any type of government body. Other characteristics of the market economy include its flexibility and the fact that there is no centralized force under economic momentum.

There are two extremes in terms of economic identity of specific countries. The planned economy is the one in which most decisions on the economy are taken by the government. On the other hand, there is a market economy on which the market itself, controlled by consumers and manufacturers, is the final factor for the aspects of the economy, such as the prices and prices of and the production. As a result, the characteristics of the market economy are such that they are flexible and respond to the PODDs on the market rather than any government interventions.

The law of supply and demand is one of the defining characteristics of the market economy. This means that the amount of specific goods will affect how much consumers want this product. In general, these two forces work in mutual inversity, which means that demand rises when supply decreases, and demand decreases when supply increases.

Consciousness would be responsible for the production of various goods and services in the market economy in the market economy to respond to consumers' interest in these goods and services. Given that the demand for a particular product is growing, businesses will increase the price of the product in response to it. After a while, the price will be too high to pay consumers, and they will buy a product at this level. This will reduce demand and increase the supply and the price will drop. The balance is eventually achieved in this way.

While theseSti market economies tend to control the economies of countries around the world, often alleviated by a certain level of government intervention. For this reason, it is rare that there is a pure market economy in the world. Most economies are mixed among the characteristics of market economies and the characteristics of the planned economy.