What an economy is capitalist and has free markets it can be said that the economy is based on?

The economy you described in your question is called a market economy. It has free markets and the production of goods and services are determined by the consumers.

Primary sources are usually  more accurate and are written by someone who experienced it or witnessed it. secondary sources are those who heard of it after the fact that can lose details and or twist the event in a light that benefits them.