who makes business decisions in a market economy
Market economy A market economy is an economic system where decisions regarding investment, production, and distribution are based on the interplay of supply and demand,[1] which determines the prices of goods and services.[2] The major defining characteristic of a market economy is that investment decisions, or the allocation of producer good, are primarily made through capital and financial markets.[3] This is contrasted with a planned economy, where investment and production decisions are embodied in an integrated plan of production established by a state or other organizational body that controls the factors of production.