The goal of a market economy is to promote free economic choices.
Supply and demand, two economic forces, govern the creation of goods and services in a market economy. Market economies are built on free transactions and are not governed by a central authority (such as a government).
According to the market economy's guiding principle, businesses that manufacture and sell products and services should do so at the highest price that customers are willing to pay. Whenever supply and demand are equal, a natural economic equilibrium is reached.
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