Final answer:
The 'selfish brain' concept in economics describes how individuals' self-interest in fulfilling their personal desires for various goods and relationships inadvertently organizes supply and demand in the market. The pursuit of these individual interests aligns with Adam Smith's invisible hand theory, indicating that self-interested behavior can inadvertently lead to favorable social results by guiding market efficiencies.
Step-by-step explanation:
The concept of how the selfish brain organizes its supply and demand relates to economic principles elucidated by Adam Smith in 'The Wealth of Nations.' In the context of economics, humans tend to be selfish, seeking to fulfill their personal needs and desires which include both material goods and relational aspirations. This self-interest, while personal, contributes to broader social dynamics as it helps to organize economic systems through the invisible hand, which refers to the way individual pursuits of self-interest unknowingly benefit society as a whole.
When individuals act in a self-interested manner, like working diligently to earn a living, they not only satisfy their personal demands but also contribute to economic output. Furthermore, as consumers seek the best deals for goods and services, their collective demand guides businesses to offer products that cater to these desires, thus organizing the market's supply efficiently. Adam Smith portrayed this process as the invisible hand, indicating that self-interested behavior can result in positive outcomes for the community.