Free-market economics is an economic system where prices for goods and services are determined by open competition among businesses, without significant government intervention. In this system, individuals and companies are free to make their own choices about production, consumption, and investment, which can lead to innovation and efficiency. In a free market, supply and demand dictate the availability and pricing of products. This means that when demand for a product increases, prices may rise, encouraging producers to create more. Conversely, if demand falls, prices may drop, prompting producers to reduce output. This dynamic helps allocate resources effectively within the economy.