In Japan's economy, private businesses and individuals have the ability to set their own prices and to decide how much to based on supply and demand.
This system is known as a market economy, where prices are determined through the interaction of buyers and sellers in the market. Businesses are free to compete with one another to attract customers, leading to efficiency and innovation in the economy.
The Japanese government plays a limited role in regulating prices, except in certain key industries such as utilities and healthcare. However, the government does implement policies to ensure fair competition and protect consumers from price gouging.
Overall, Japan's market economy has been successful in fostering economic growth and development, leading to the country's status as one of the world's leading economies.