Market Economy Law and Legal Definition
Market economy is an economic system where the price of a commodity is determined on the interchange of demand and supply. In the modern world, pure system of market economy does not exist. Market economy is different from mixed economy where the price of a commodity is influenced by governmental control. This system is based on three freedoms :
i. freedom of the consumer to choose among competing products and services,
ii. freedom of the producer to start or expand a business, and
iii. freedom of the worker to choose a job and employer.