A free market economy is an economic system in which prices, production, and distribution of goods and services are determined by the market forces of supply and demand without significant government intervention or control.
Related terms
Supply and Demand: The relationship between the availability (supply) and desire (demand) for a specific product or service that determines its price in a free market.
Competition: The rivalry among sellers in a market that encourages efficiency, innovation, and lower prices for consumers.
Laissez-Faire: An economic philosophy advocating minimal government interference in the economy, allowing markets to operate freely.