In a free-market system, decisions are made by thousands of people who have information about resources, production technology and consumer desires.
A free-market system refers to an economic system in which there is no role of government, and the production and distribution of resources are determined by the market forces of demand and supply.
The market forces decide all the aspects of the economy, from what and how to produce, to the prices of products. When particular goods are in high demand, the production of those goods will increase, and if supply does not keep up with demand, the prices of the goods are bound to rise.
It is a spontaneous and decentralized market, in which individuals - as opposed to public agencies- make economic decisions. This is possible when the masses have information about resources, production technology and consumer desires.
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