Question

Which of the following illustrates what happens when supply and demand work as they should, according to Adam Smith? (1 point)
O There is enough supply of a given product to meet consumer demands
O Governments open new factories to meet demand for goods.
• Companies make more of a product even though few people buy it.
O Consumers make companies create new types of products.

Answer 1

There is enough supply of a given product to meet consumer demands.