Producers And Consumers
Producers make goods or provide services. They decide how much to produce and how to produce it. They also set their own selling prices. Consumers buy the goods and services they want from producers.
In a market economy, which is also known as capitalism or the free enterprise system, people own their goods and property. Producers in a market economy are free to decide what goods and services to make and what prices to charge. what consumers buy is based on incomes and needs.
In a market economy, government involvement is limited but very important. the government sets laws and regulations to protect against corruption and to guard people's rights.