A free-market system is a basis for supply and demand. Throughout history the base concept of supply and demand has not changed a great deal. Only through the evolution process of this economic system have we gained better ways to determine prices and goods produced.
             History and the Progression of Supply and Demand took quite a while to reach what it is today. In 1776, Adam Smith wrote the book entitled "Wealth of Nations" which set a primary basis for the idea of supply and demand. In his book, he thought that the supply price would be a fixed price and that the demand would increase or decrease as the price increased or decreased. In 1817, a man named David Ricardo established an economic model of what he thought supply and demand should be. In the late 19th century a field of marginalist thinkers, which was composed of Stanley Jevens, Carl Menger, and Leon Walras, had the idea that supply and demand was that the price was set by the most expensive price. This sort of thinking was a great improvement over that of Adam Smith's. Todays more modern ideas of supply and demand derived from Alfred Marshall and Leon Walras. [1] These two men combined both supply and demand to create an equilibrium point. This point is where the supply curve and the demand curve cross. Since then the supply and demand theory has not been changed in any way, only monitored. Market Exchange has since driven supply and demand. Market Exchange is basically the need to buy and sell goods. If Market Exchange did not exist then supply and demand would also not exist. [2]
             A free market economic system is when the market, decides what to produce and in what quantities by the purchaser and seller negotiating prices for goods and services. [3] There are two basic concepts of a Free Market System. One of them is the economic concept of supply. The definition of supply states, "Supply refers to the quantity of products that manufacturers or owners are w...