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Example of Market Economy

A market economy is a decentralized system of trade which defines demand and supply and establishes prices through competition. The theory includes a free interaction between consumers and suppliers of consumer demands. Demand also dictates production, in theory, but the obvious inference is that production can also dictate prices through shortages. This is the opposite of a 'command economy' like communism, in which prices and incomes are fixed by the state. The Free Market is one of the ideological bases of Western conservatives, and the main subject of criticism by liberal progressives.

Examples of Market Economy:

The United States
The European Union (To a point: The EU also controls some price issues)

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