Question

Adam smith believed the invisible hand would do what for the economy?

A. always dictate supply and demand
B. raise the prices on all products
C. destroy the equilibrium of the economy
D. restore the equilibrium of the economy

Answer 1

restore the equilibrium of the economy

Step-by-step explanation:

According to Adam Smith, if market forces are allowed to move freely, they will work for the common benefit of everyone, and it will lead to an equilibrium in the market. The invisible hand moves the supply and demand in such a way to restore the natural balance. Sellers and buyers look for their self-interest and in doing that they efficient allocation of the resources