Question

Mark wants to sell his condo. Jack and Nick are two prospective buyers. Jack is willing to pay the amount quoted by Mark, while Nick is unable to pay such a high price for the condo. Because Jack is able to pay the asking price, Mark sells his condo to Jack. In which type of economy does this transaction take place?

Answer 1

The correct answer here is that the economy in which Mark, Jack and Nick are operating is a market economy. A market economy is an economy that encourages buyers and sellers to act competitively so that the best deal can be achieved for all.