Responses
There is enough supply of a given product to meet consumer demands.
There is enough supply of a given product to meet consumer demands.
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.
Companies make more of a product even though few people buy it.
1 answer
The statement that best illustrates what happens when supply and demand work as they should, according to Adam Smith, is:
There is enough supply of a given product to meet consumer demands.
This reflects the idea of equilibrium in the market, where the quantity supplied meets the quantity demanded, leading to stable prices.
