Question

The ____________________ theory suggests that in a free market economy, individuals are driven by their own self-interest. However, that own self-interest actually promotes an interdependence on one another that in turn promotes better quality materials/items at an affordable cost.

Answer 1

Invisible theory

Step-by-step explanation:

Invisible theory highlighted the concept of the invisible hand which helps to move demand and supply in the economy. Invisible hand force moves demand and supply to reach equilibrium. According to invisible hand theory, the free-market economy is moved by rational self-interests and own self-interest which makes it comparatively easy to reach market equilibrium. The concept was introduced by Adam smith.