Free Markets
Definition
Free markets refer to an economic system where supply and demand are unregulated except by the country's competition policy, and rights over private property are well-defined and enforced.
Analogy
Imagine shopping at a farmers' market where vendors set their own prices based on what they think customers will pay, rather than having prices dictated by a central authority. That's similar to how free markets work - businesses determine prices based on supply (what they can produce) and demand (what consumers want).
Related terms
Supply & Demand: Economic model of price determination in a market; it concludes that price will function when product quantity supplied equals quantity demanded.
Capitalism: An economic system characterized by private ownership of goods or capital.
Competition Policy: Policies aimed at promoting competition among business entities.
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