f there is consumer demand then producers will make supply. The price of goods is determined by an agreement between the producer and consumer. The producers produce a certain supply of goods that they think the consumer will buy. The consumer will buy a great deal of goods if they are very cheap and will not buy very much if they are very expensive. Using supply and demand companies and consumers agree on a middle price or equilibrium price. The United States is considered a private enterprise economy, the government owns very few businesses such as the post office, a quarter or the electric companies, and a quarter of the railways. Also, the United States government does not provide health care for its citizens. The free market society is set up so that production decisions are influenced entirely by consumer demand. This is not always best because consumers do not always demand the highest quality products in favor of cheaper ones. The biggest problem in free market economies is the relative ease and opportunity for businesses to form monopolies and oligopolies. When businesses form monopolies and oligopolies they can control the price of goods completely because there are no competitive businesses to keep them in check. This provides unfair quality and price controls for consumers.
             In a centrally planned economy the government sets regulations, standards, minimum wages, and taxes for businesses. The government takes taxes off workers paychecks as well. The government does not exactly take this money away from its citizens as it gives it back in the form of social programs. The government supplies education, health care, pensions, unemployment and disability insurance and many other programs. The amount of programs provided depends on how many taxes are taken from businesses and workers and programs that the government decides are necessary. The government owns key businesses that it believes are necessary to be provided for its ...