Responses
Governments open new factories to meet demand for goods.
Governments open new factories to meet demand for goods.
Consumers make companies create new types of products.
Consumers make companies create new types of products.
Governments should not interfere with the economy.
Governments should not interfere with the economy.
Companies make more of a product even though few people buy it.
Companies make more of a product even though few people buy it.
1 answer
According to Adam Smith's principles of supply and demand, the correct response that illustrates how these forces work as they should is:
Governments should not interfere with the economy.
This response aligns with Smith's idea of the "invisible hand," where free markets can allocate resources efficiently without government intervention. The other options do not accurately reflect the ideal functioning of supply and demand.
