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

Question

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. 

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

Companies

Answer 1

The correct response that 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 statement reflects the balance achieved in a market economy where supply aligns with consumer demand, leading to an efficient allocation of resources.