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2) Explain A Free Market Economy in a paragraph

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User Ethem
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Final answer:

A free market economy is an economic system based on supply and demand without government regulation.


Step-by-step explanation:

A free market economy is an economic system where prices for goods and services are determined by the forces of supply and demand, without any government intervention or regulation. In a free market economy, individuals and businesses have the freedom to produce, buy, and sell whatever they want. The competition between buyers and sellers drives prices down or up, depending on the market conditions. For example, if there is high demand for a product but limited supply, the price will increase. Similarly, if there is low demand and excess supply, the price will decrease.


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User RumbleFish
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