What type of economy lacks significant government intervention and relies largely on supply and demand?

A market economy is characterized by minimal government intervention, allowing supply and demand to dictate the production and pricing of goods and services. In this system, decisions regarding investment, production, and distribution are largely determined by the interactions of individuals and businesses in the marketplace. Prices are set based on how much of a good or service is available (supply) and how much consumers want it (demand). The freedom of choice inherent in a market economy encourages competition, innovation, and efficiency, as businesses strive to meet consumer needs while maximizing their profits.

In contrast, a traditional economy relies on customs and traditions to guide economic decisions, often with little regard for market fluctuations. A planned economy, also known as a command economy, is heavily regulated by the government, which makes all economic decisions and controls resources. A mixed economy combines elements of both market and planned economies, featuring a degree of government intervention while also allowing for free market principles. This blend means that while some decisions are left to the forces of supply and demand, there are still significant regulations and interventions from the government.