A capitalist system and a free market are both economic environments that are very similar in a lot of ways, however have a few distinct differences. Supply and demand inherently encompasses the both ideological economical systems together through the price of production of goods and services.
Capitalism is based on ownership of resources that are needed to create a service or good. An example of this would be labor, land, capital, or an entrepreneurial idea, in order to generate capital profits. The free market on the other hand, is a system that is based solely on supply and demand. In regards to a free market, the government lacks regulations, which allows the seller and consumer to transact freely on the price. As a consumer I would probably favor a free market over capitalism, but there are some key factors that would both benefit the consumer.The free market is a lot like the stock market. It market and price of a product is based on the demand of the product.
If people do not want the stock, then the price falls. On the other hand though, if a product is in high demand, prices can be come increasinly high and sometimes unrealistic. This type of market does however allow for allocation of goods and services spread evenly which allows for supply to meet demand.
When this happens, consumer and industry both win. There are also many ways that a conumser could favor a capitalist market. When the industry has incentive to be rich, this encourages innovation of better products.
The ladder would mean that the industry could form monopolies and inheritantly drive up prices in which consumers are forced to pay for with everyday goods and services that are neccesities of life. This would also lead to inbalance of the market which leads to inequality for the consumer.I truly believe that in a free market, it allows for a much more fare environment stimulated by consumers purchases. When prices are fare, then the economy thrives.
When you have a market in which supply cant meet demand, or demand cant meet supply, you tend to have a downward trend in the economy which ultimately is bad for both sides.