In simple terms can you please explain to me what free market capitalism means? All the definitions are confusing and I don't understand them. Thank you for your help.
2 answers
free market capitalism? Prices are set by demand and supply alone, with no artificial price or demand restrictions.
Think of a lemonade stand run by kids. If they charge ten cents a glass, they'll probably sell a lot of lemonade. But if they raise the price to $1.00 a glass, they probably won't have many customers.
That's free market capitalism. The merchant decides what price to charge for his product in order to make the most profit.
That's free market capitalism. The merchant decides what price to charge for his product in order to make the most profit.
1 answer