ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A market economy is a system in which economic decisions are based on the demand and supply in the market. The market determines that goods and services should be produced, how many of the products will be created, and what the price of the goods is.

Detailed explanation-2: -Definition. A market economy is an economic system in which individuals, rather than the state, own most of the resources. This includes land, labor, and capital. In a market economy, individuals control the use and price of these resources through voluntary decisions made in the marketplace.

Detailed explanation-3: -Price is dependent on the interaction between demand and supply components of a market. Demand and supply represent the willingness of consumers and producers to engage in buying and selling. An exchange of a product takes place when buyers and sellers can agree upon a price.

Detailed explanation-4: -A market economy is an economic system in which economic decisions and the pricing of goods and services are guided by the interactions of a country’s individual citizens and businesses.