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A Market Economy A Market Economy is the most efficient way of organizing economic activities. Millions of suppliers (firm) and consumers (buyers) make the markets. The suppliers and consumers sell and purchase goods that satisfy the wants of consumers and suppliers. Suppliers and consumers make rational decisions, respond to incentives and make tradeoffs. Over all trade makes everyone better off. (Mankiw) If one firm does not meet the wants of the consumer then they will lose their place in the market. Sales for most major retailers have risen this quarter, while others have fallen. The over all sales gain equals 7.9%. (Chandler) Sales rose because consumers are not bothered by threats of war. Also, Approximate words: 568 Approximate pages: 3

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