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.
Geography - bobpursley, Friday, October 1, 2010 at 7:22pm
free market capitalism? Prices are set by demand and supply alone, with no artificial price or demand restrictions.
Geography - Ms. Sue, Friday, October 1, 2010 at 7:31pm
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.