In a market economy, economic decisions are primarily made by individuals and businesses. The consumers make decisions regarding what goods and services they want to purchase and at what price, while businesses make decisions on what to produce and sell based on consumer demand and profitability. The interaction between consumers and producers in the market determines the allocation of resources and the prices of goods and services. The role of the government in a market economy is typically limited to ensuring fair competition, enforcing contracts, and providing essential public goods and services.
