Which of the following best explains how a free-market system has a circular flow of influnces

The correct answer is consumers decisions affect producers and producers decisions affect consumers

Free Market is the economic system where trade between individuals and institutions can take place without state interference. It is a decentralized and independent economy, marked by social cooperation: a relationship of voluntary exchange. There is also the division of labor and private ownership of all means of production.

In the Free Market, trade is only possible because each party expects to gain from it. Trade happens because both parties benefit, both can gain, otherwise they would not engage in the trade.