Can You Give Detailed Information About A Free Market Economy?

In a free market economy the buyers and the sellers are responsible for making choices. In other words in such economy, there is absolute power to prices which determines the allocation of resources. These prices are decided by the demand and supply of the products in the market. When the supply is greater than the demand then prices of that specific commodity can go own. However, when supply is less than demand then market prices go up. In addition to that, in a free market economy there is free trade and there are no tariffs or subsidies imposed on trade by the government.

There are some basic features of free market economy like people has sufficient control over resources. Prices are usually higher in a free market economy because they are controlled by demand and supply of products in the market. Poor class cannot survive in such economy because of high prices.