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What does the 'invisible hand' in the market place?

In: Economics [Edit categories]

Answer:

It suggests there is an invisible balance between supply and demand. If there's too much supply, the invisible hand pushes the price down until vendors are able to sell their overstock. If there is less demand (as for carriages when cars took over), the invisible hand guides production down and price up.

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First answer by ID2030116750. Last edit by Gfbj. Contributor trust: 3 [recommend contributor ]. Question popularity: 2 [recommend question].

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