Market Economy

The decisions are often influenced by the competition, demand and supply so in the real world, there is no perfect free economy and most of them all over the world are more commonly known as mixed economies. The competition plays its role here where the best is having the best. The product with more good quality and more demand among buyers makes it more competitive and the business thus have its own ways and own profits. In this case, even if the seller raises the price due to the quality and attraction of it, consumers will consume it anyway while on the other hand if the product with less demand and less eminence won't be accepted by the consumers if the prices are changed. Such productions are rejected immediately and there is no place for them in the tough competition. The limitations which makes free market economy not a perfect free market are the import and export quantity and some laws which has to obeyed. So a free market economy has some advantages, disadvantages plus limitations.
The advantages are:
1. the power of choice on how much to spend
2. The second great benefit is the use of best abilities of the organizer which boost up the economy of country.
3. Free market is more responsive to the demands of consumer
4. The consumer can have product oh his choice
5. Better and new ways of usage of capital for production and services
6. In free market there is a large variety of products
Some of the disadvantages are:
1. The owner looks for his own profit and thus the factors are engaged on the basis of profit
2. The social effects are commonly ignored
3. The business can fail to give the best and some products may harm the consumer
4. Not all the expectations of the consumers are fulfilled.