In which kind of economy are prices determined by supply and demand and by government actions?

Capitalism is an economic system in which private people, not the government, own and run companies. These companies competewith other companies for business. They decide what products they want to produce, how much they should cost and where to sell them. Companies do all these things in order to make profits for their owners. People who use their money to start companies or run companies are called capitalists.

The second option is correct according to edgenuity