What is it like for a teenager to live in a market economic system?

A market
economy is controlled by the forces of
demand and supply. Since there is minimal government
intervention, businesses
are free to set the price of the product. However, the prices have to
be
reasonable since consumers also have a say in what happens in the market. If the prices
are
too high, consumers will not buy the product.

A
teenager living in a market
economy can benefit from competitive prices and a
selection of products. If investors see the
potential for huge profits in a
certain area, they will invest in it. They do so because they
want to make
money. As more and more businesses infiltrate that area, consumers get a variety
of
products as firms compete for buyers.

In market
economies, businesses are in
control of what they do. Firms thrive in such
environments because they can adjust their costs
and prices to maximize
returns. Unfortunately, some of the actions taken by the firm may be at
the
expense of the consumer. A teenager living in such an economy may get products that
have
poor quality because firms get rid of certain inputs to minimize costs
and increase
revenues.

A teenager living in a market
economy may also find that life is
difficult because things are too
expensive. Businesses are only after their interests. If they
see the demand
for their products has increased, they will increase the prices because they
want
to make more money.