Free Market Economics

Definition

Free market economics is an economic system based on supply and demand with little or no government control. Prices for goods and services are set freely by consent between vendors and consumers.

Related terms

Capitalism: An economic system characterized by private ownership where production, distribution, and prices are determined by competition in a free market.

Supply & Demand: Fundamental concept of economics that states that at equilibrium price, quantity supplied equals quantity demanded.

Competition: In economics, competition occurs when businesses vie for the same resources or customers.