Free markets allocate (a) the supply of goods to the buyers who value them most highly and (b) the demand for goods to the sellers who can produce them at least cost.

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In a free market economy, prices are determined by supply and demand. This mechanism naturally allocates resources efficiently: goods are supplied by those who can produce them at the lowest cost and purchased by those who value them the most, as indicated by their willingness to pay higher prices.

Free Markets Allocate (A) the Supply of Goods to the Buyers