This type of economy is often found in a democracy.

a. command economy

b. traditional economy

c. market economy

d. restricted economy

The correct answer is - C. Market Economy.

The democratic countries tend to have market economies. These types of economies are economies where the businessman can have their own companies, without being forced by the government to work by their terms and needs, and can work independently in the direction which is desired. Also the trade is open, so in this economy it is possible to trade with countries all around the world by its own interest and choice.