Explanation:
The free market is one where there is freedom of choice, that is, exchanges between goods and services in the market are carried out freely with minimal influence from the state.
Therefore, the free market predominates in capitalist countries, it is the law of supply and demand that will influence the economy, supply being the quantity of a good offered in the market and demand the quantity of a good that consumers are looking for to buy. Since one influences the other, in an ideal economy, the law of supply and demand is balanced.
A company's profit can be affected by the free market by economic variables that cause supply and demand to decrease, like many competitors in the market, economic crisis, shortage of raw materials, etc.
