A free market system affects supply and demand by allowing prices to be dictated by the interactions of businesses and consumers. In a free market, the laws of supply and demand govern the production of goods and services. When demand for a product or service increases, the price tends to rise. When suppliers are producing more goods and services, the price tends to fall. This dynamic encourages competition and efficiency among businesses, and it leads to a wide variety of goods and services being available to consumers.
Economics can be intimidating to the person who is not well-versed in business and mathematics. This...
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