Describe two benefits you enjoy because of the free-market system.

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mkoren | Middle School Teacher | (Level 3) Senior Educator

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There are many benefits we enjoy because of the free market system.  One of these is competition.  Because of competition, customers will usually receive a competitive price for the products they buy.  When presented with a choice between two similar products, consumers will usually buy the less expensive product.  Thus, a competitive environment helps to control prices. By having competition, businesses also need to treat their customers well.  Businesses with poor customer service will lose their customers to competitors. A second advantage of a free market system is that prices are determined by the forces of supply and demand instead of being artificially set by the government.  This usually means lower prices for consumers.  Another advantage of the free market system is people are free to develop new ideas.  This allows for the development of new products and services because people are willing to take a chance and provide something new.  The government does not drive this, but instead people with an entrepreneurial spirit drive this process.  This benefits consumers as well.  There are many benefits to the free market system.


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