In a market economy market prices are determined they're buying and decisions

In a market economy, market prices are determined through buying and selling decisions. In a market economy people who produce and sell make decisions about what is available (and this affects the decisions of the buyers). It is a system where the laws of supply (natural resources, capital, and labor) and demand (purchases by consumers, businesses, and the government) direct the production of goods and services. Supply and demand represent the willingness of consumers and producers to engage in buying and selling. For example, an exchange of a product only takes place when buyers and sellers can agree upon a price.