How is the production of goods and services regulated in a free market?

In the free market,  the law of supply and demand regulates production and labor. Companies sell good and services at the highest prices consumers are willing to pay, while workers earn the highest wages companies are willing to pay for the services.

Explanation:

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when world war i broke out across europe in 1914, president woodrow wilson proclaimed the united states would remain neutral, and many americans supported this policy of nonintervention. however, public opinion about neutrality started to change after the sinking of the british ocean liner lusitania by a german u-boat in 1915; almost 2,000 people perished, including 128 americans. along with news of the zimmerman telegram threatening an alliance between germany and mexico, wilson asked congress for a declaration of war against germany. the u.s. officially entered the conflict on april 6, 1917.