“And what would you like to order, Sir” stated the waitress. “I’d like a coffee with extra cream please” replied Tom. It was a gorgeous day outside and a chilly morning, cold enough to make Tom order a hot coffee. As he sat down outside of his coffee shop, he saw a flyer. It was for a new coffee shop opening.

He thought to himself “Oh looks like this we have some competition here”. Tom wondered what was going on but there, everyone has the freedom to open any business they wanted. Then he got to thinking on how he could make his shop better than the other and how exactly he had to do it. What should he

produce that would make his shop better than the other? He came up with a brilliant plan to make custom smoothies. surely the other shop wouldn’t have that. Therefore, he needed to think on how he would do that. He spoke to his fellow workers and they suggested that they bought recourses from the hardware and mechanics and he would set a new station for this project to happen. Tom needed to know this would work. He needed to target the audience; a crowd of people who will buy his product and earn him profit. He decided to make a post on social media about his new idea and to make sure everyone knew that they should go and try it out once its all complete. He also posted an article on the healthy eating activists page to garner the healthy eaters to try out the natural smoothies. He also knew

not to make it expensive so more people coming would not have to spend so much money therefore more people means more money coming to him. He thought that would gain him profit. But there were some flaws in his plan. Not everything was as perfect, if his idea doesn’t go as planned and the whole strategy flops then he earns a major loss. If his smoothies are poor quality then that’s a fail for his business. Lastly was the excessive power of firms. A large company can steal his idea and make it their

own with no credit to Tom. But he is willing to take risks. Eventually Tom finalizes his project and a few weeks after it was a major success. He was happy he went along with his plan which turn out to make great success for him.

A free market econompy is a system in which the econimic decision are guided by the changes in the prices which are caused by the individual buyers and sellers who interact with the market  place.