A free market refers to an economic system where producers of goods and services have the freedom to make decisions on how to allocate resources based on the demand from consumers. In this system, there are no restrictions or interference from the government or any central authority. Producers are able to determine what to produce, how much to produce, and at what price to sell their products or services. This allows for competition, efficiency, and innovation in the market as producers respond to consumer preferences and market signals.