Which of the following illustrates what happens when supply and demand work as they should, according to Adam Smith? (1 point)

Question

Responses

Consumers make companies create new types of products.
Consumers make companies create new types of products.

Governments open new factories to meet demand for goods.
Governments open new factories to meet demand for goods.

Companies make more of a product even though few people buy it.

Answer 1

The statement that best illustrates what happens when supply and demand work as they should, according to Adam Smith, is:

Consumers make companies create new types of products.

This reflects the principle of demand driving supply. When consumers express their preferences, companies respond by creating products that meet those demands, leading to innovation and competition in the market.