Free market principles refer to the economic system where prices for goods and services are determined by open competition among businesses, without significant government intervention. In this system, supply and demand dictate market dynamics, allowing consumers to make choices based on their preferences and needs. Additionally, free markets encourage innovation and efficiency, as companies strive to attract customers by improving their products and services. This competition can lead to better quality and lower prices, benefiting consumers. Overall, free market principles promote individual entrepreneurship and economic growth within a society.