What is the process through which the free market economy determines which goods and services should be produced?

And how do non-free market economies decide which goods to produce?

(1) explore the concepts of scarcity and opportunity cost, and (2) explore and become familiar with the supply and demand model. The supply and demand model is a basic tool used by economists to illustrate the functioning of markets, and to illustrate the impact on prices and quantities of increasing and decreasing supply and increasing and decreasing demand.