Which of the following best describes a free market economy?

A free market economy is characterized by minimal government intervention, allowing prices to be determined primarily by competition among businesses. In this system, the forces of supply and demand play a central role in establishing prices for goods and services. Businesses compete freely, and this competition fosters efficiency, innovation, and consumer choice, as companies strive to attract customers by offering better quality products or lower prices.

The other options do not align with the principles of a free market economy. Strict government control of prices indicates a regulated or command economy, where the government plays a significant role in setting prices rather than allowing the market to dictate them. Trade controlled by regulated agencies also suggests a level of government intervention that contradicts the essence of a free market. Lastly, a market dominated by a single supplier describes a monopoly, which stifles competition and does not reflect the competitive nature fundamental to a free market economy.