So, the mixed economy is an arena in which key economic decisions are taken by business firms, consumers and government. It is also important to note that these decisions are seldom taken is isolation. Under the general imperatives of consumer sovereignty ,firms, consumers and government continually interact with one another across most market in the mixed economy. In terms of Fig. this 1.1 , that (b) and (c) are most prevalent, with (a) – the free market- in reality quite rare.