Types of Economy

Common Economy: In a common economy the question of allocative resource are answer by the state. The state decide decision the volume of resources produce, types of goods and service produce, type of work is citizen will do, level of control and many other space of life.

Market Economy: In this system the consumer is king. Choice made by consumer that directly affect the allocation of resources in the economic. 
 

Demand and supply condition determine the resourced allocation.
 

Demand influence price and price influence supply. Therefor demand influences for supply price mechanism allows people to buy white they on subject to income constraint. 
 

The nature and quality of whit is produce will influence by consumer preference. The traditional economic view of competition consentience on the role of market structure in the market economic. This views is best on the (S-C-P) structure-contract-performance.