What distinguishes a market economy from a free-enterprise economy? A market economy is based on set prices that businesses use to produce goods that consumers need.
A free-enterprise economy allows the government to freely regulate the quantity of items produced as supply decreases in a market economy.
A market economy is based on supply and demand, and a free-enterprise economy is based on relying on demand to produce products to make money.
In a market economy, the supply and demand of goods is determined by consumers who are free to set their own prices in a free enterprise