Economics and E-commerce deal with the research and theoretical models of traditional and old economic and business. It helps to understand the future growth of electronic commerce. Economics is a field of science that focuses on the working of economies and the interaction of economic agents. Economics in general is the study of how people make choices to satisfy their wants. Economic system can be classified as traditional economy, market economy, centrally planned economy and mixed economies. E-commerce is business that takes place electronically, generally over the internet. It refers to the use of the internet and web to transact business between and among organizations and individuals. E-commerce began in the year 1995 and grew at an annual rate of 16%. Rapid growth in the field of E-commerce led to market bubble while many companies failed, many survived with soaring revenues. E-commerce is the fastest growing form of retail trade in U.S, Europe and Asia. Important features of E-commerce include global reach; richness; interactivity; information density. Further E-commerce can be classified into B2B, B2C and C2C. Economics and E-commerce will lead to the establishment of research in the application of economic principles to various business models and advanced technologies.