Final answer:
A pure market economy is sometimes called Laissez-faire capitalism. In a pure market economy, there is no government intervention and the prices of goods and services are entirely set by the demand and supply.
Step-by-step explanation:
A pure market economy is sometimes called Laissez-faire capitalism
In a pure market economy, there is no government intervention. The prices of goods and services are entirely set by the demand and supply of what is available. This is known as the 'price system.' Thus there is competition amongst buyers and sellers in a market economy. Buyers are trying to outbid other buyers by offering a higher price. Whereas sellers are competing with other sellers by offering lower prices and/or higher quality goods and services.