Final answer:
A free-market system functions through the interaction of supply and demand, with minimal government involvement. Consumers and entrepreneurs play key roles in this economic type.
Step-by-step explanation:
A free-market system functions through the interaction of supply and demand, with minimal government involvement. This means that prices and quantities of goods and services are determined by the preferences and choices of buyers and sellers in the market. Consumers play a crucial role in this economic system by determining demand and influencing producers' decisions. Entrepreneurs also play a part by identifying market opportunities and driving innovation.
In a free-market system, the government's role is usually limited to enforcing property rights, ensuring fair competition, and preventing fraud and coercion. It sets rules and regulations to ensure a level playing field and protect consumers and workers.