Final answer:
In a free market, the price of goods is set by the consumer and producer.
Step-by-step explanation:
In a pure market economy, the price of goods is set by the consumer and producer.
Consumers determine the demand for goods and services, which influences the price. If there is high demand, the price tends to rise. On the other hand, producers determine the supply of goods and services. If there is low supply, the price tends to rise.
In a free market, there is no government intervention in setting prices. The prices are purely determined by the interaction of consumers and producers.