What does a free market system that relies on private property ownership and supply and demand refer to?

A free market system that emphasizes private property ownership and operates based on supply and demand is characterized as capitalism. In capitalism, individuals have the right to own and control property, and businesses are typically privately owned and operated for profit. The prices of goods and services in a capitalist system are determined by the interaction of supply and demand in the marketplace.

Capitalism allows for competition, which can lead to innovation and efficiency as businesses strive to meet consumer needs and preferences. This system contrasts sharply with socialism and communism, where the government or the collective typically owns resources and production, limiting individual ownership and market-driven pricing mechanisms. Mercantilism, on the other hand, refers to an economic theory and practice dominant in Europe during the 16th to 18th centuries that emphasized the role of the state in managing the economy and commerce, including protecting domestic industries through tariffs and monopolies.

Thus, the defining attributes of a free market system in the question align closely with the principles of capitalism.