These principles refer to an economic system where prices for goods and services are self-regulated by buyers' demand and sellers' supply. The government does not intervene in pricing decisions or business operations.
congrats on reading the definition of Free Market Principles. now let's actually learn it.
Supply & Demand: Economic model that determines price levels in a market depending on availability (supply) versus desire for purchase (demand).
Competition: The rivalry among sellers trying to achieve such goals as increasing profits, market share, and sales volume by varying the elements of the marketing mix.
Consumer Sovereignty: A characteristic of a market economy that gives ultimate power over what is produced to consumers.