Free markets allocate (1) the supply of goods to the buyers who value them most highly and (2) the demand for goods to the sellers who can produce them at the least cost.

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This is the basic principle of how free markets work. Buyers are willing to pay more for goods they value highly, which drives up the price and signals to sellers that there is demand for that good. Sellers who can produce the good at the least cost are able to offer it at a lower price and still make a profit, which attracts buyers looking for a good deal. This dynamic ultimately results in a market price for the good that reflects the balance between supply and demand.

Free Markets Allocate (1) the Supply of Goods to the Buyers