A traditional economy is based on customs, beliefs, and traditions passed down through generations, where the production and distribution of goods and services are based on what has been done in the past. In contrast, a market economy is based on supply and demand, with prices set through negotiation between buyers and sellers in the marketplace. The production and distribution of goods and services in a market economy are determined by consumer preferences and the laws of supply and demand. In a traditional economy, economic decisions are made by the community or tribal leaders, while in a market economy, individuals make economic decisions based on their own self-interest. Overall, the key difference between traditional and market economies is the way economic decisions are made and the role of customs and traditions in shaping the economy.