A market economy(A free market system) is the economy in which individuals control production and allocation decisions through supply and demand. A market is a mechanism for exchange between the buyers and sellers of particular goods or To a service.To understand how market works, consider what happens when you go to buy a economy orange in a fruit market. While fruit shop is selling orange for 30 Baht per kilogram, a one another is 35 Baht kilogram. Both shops are free to charge what they want, and are free to buy what choose.If both shops have the same quality of orange, you will buy the cheaper one. If 35 Baht/kilogram orange fresher, you may buy the the more expensive one instead. Therefore, both buyers and sellers enjoy freedom of choice.