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Simple English definitions for legal terms
free market
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A quick definition of free market:
A free market is a place where people can buy and sell things without the government telling them what to do. It can be a physical place like a farmers' market or a virtual place like an online store. In a free market, prices are determined by how much people are willing to pay for something and how much sellers are willing to sell it for. This means that if there is a lot of demand for something, the price will go up, but if there is not a lot of demand, the price will go down.A more thorough explanation:
A free market is a type of market where buyers and sellers can freely trade goods and services without any interference from the government or other external forces. In a free market, prices are determined by supply and demand, and competition is the driving force behind the market.
For example, a farmers' market is a free market where farmers can sell their produce directly to consumers without any government intervention. Another example is the stock market, where investors can buy and sell stocks freely based on market conditions.
These examples illustrate the definition of a free market because they show how buyers and sellers can interact without any external interference. In a farmers' market, farmers can set their own prices based on supply and demand, and consumers can choose which products to buy. In the stock market, investors can freely buy and sell stocks based on market conditions, without any government intervention.