USA HISTORY

Detailed explanation-1: -Free markets are a mechanism for distributing and allocating goods that have been produced by way of price discovery. This involves buyers and sellers competing with one another and among each other to agree upon a price that, in theory, reaches an equilibrium based on supply and demand.

Detailed explanation-2: -Market economies work using the forces of supply and demand to determine the appropriate prices and quantities for most goods and services in the economy.

Detailed explanation-3: -In a market economy, prices are set by the decisions of thousands of consumers and producers, each acting in their own self-interest. The profit motive and competition between businesses provide an incentive for producers to deliver the most desirable, cost-effective products at the best possible price.

Detailed explanation-4: -Goods and services are distributed in a free market based on prices. A price is a request by a producer for a dollar amount in exchange for a good or service and it is met by consumers if they decide to buy from that supplier or to go with a competitor.

Detailed explanation-5: -Capitalism is often thought of as an economic system in which private actors own and control property in accord with their interests, and demand and supply freely set prices in markets in a way that can serve the best interests of society.