How competition drives the market

Free Market Economy

Individuals and Businesses make their own decisions about what to buy or sell. In the free market system people do what they want and make what they want and buy what they want. They can determine prices because of the competition.

Competition Drives the Market

Because in a Free Market the government doesn't regulate prices, the way that prices are kept at acceptable levels is through competition. If a product has a similar product that competes against it, it can keep prices lower to try and make consumers buy it over the competition.

3 Products That Compete Against Each Other