Define free markets. Does a perfectly competitive market qualify as a

Define free markets. Does a perfectly competitive market qualify as a free market?

What will be an ideal response?

ANSWER

A free market can be defined as a market structure where all exchanges are voluntary. There is very little government control or coercion in the market and the government does not tell market participants what to do. In a perfectly competitive market, the equilibrium price and quantity are determined through the forces of demand and supply, and without any government intervention. Hence, perfectly competitive markets qualify as free markets.