When buyers and sellers work together to determine the price

This is called a free market.

Explanation:

A free market is an economic model where the rules of supply and demand dominate the market with limited interference from the authorities, mostly governments. The buyers and sellers in the economy engage in trade without any restrictions from the government. A free market is often characterized by spontaneous and unsystematic results where the major market players' decisions affect the economy. Although entirely free markets do not exist, research has shown that economies that have found a direct relationship between economic health of a country and free markets.

In a free market, the individual players determine the price as opposed to a market having government control. Individual traders utilize the forces of demand and supply to adjust the prices accordingly. For example; when the demand for a good or service is high, the price always starts rising causing most consumers to look for alternatives. When the consumers shift their demand to the alternatives, the price starts going down since the demand has also reduced. On the same note, when the supply of a good is too high, the price reduces since it is readily available to most consumers, however when the supply reduces, the price rises since most consumers have to struggle for the limited resource.