Question

Give an example in the marketplace that describes the principles of the free market and competition. Bring facts, figures and other examples in your discussion.

Answer 1

We know that competition is the market place where a large number of buyers and sellers selling the heterogeneous product. On the same way, the free market is the market place where the absence of government interference and the buyers and sellers accepting equilibrium price.

The typical example of the principle applies the fruit and vegetable market where both buyers and sellers are meet each other and set a common price. Another example is a street vendor, here sellers set a price and buyers bargain this price. And finally agrees on a standard price.