economics 212

Market systems are defined as the various ways in which economic production and consumption are organized. This could include free markets, which are characterized by freedom of choice that is determined by the demand and supply of goods and services. It could also include mixed markets, which combine elements of a government-regulated market with the freedom of a free market, and command markets, which are dominated by government control. The role of an economist within these systems is to analyze the pricing mechanisms of goods and services. They study how supply and demand interact to set prices, as well as how governmental regulations may affect the market. They make forecasts for how markets may respond to new policies, and suggest solutions for how the market should be structured to promote the most benefit for its participants. To compare, market systems both involve the study of the pricing mechanisms of goods and services, while the role of an economist within these systems is to examine how the factors of supply and demand, as well as governmental regulations, interact to set prices. To contrast, free markets offer freedom of choice that is determined by the demand and supply of goods and services, while command markets are dominated by government control. Mixed markets combine elements of both free and regulated markets.