Question

Which of the following is true about how the "invisible hand" influences economic activity through prices when a product has lower demand than supply?â
a. âThe price must increase, causing less buyers to buy and less sellers to sell.
b.â The price must increase, causing less buyers to buy and more sellers to sell.
c.â The price must decrease, causing more buyers to buy and less sellers to sell.
d. âThe price must decrease, causing more buyers to buy and more sellers to sell.

Answer 1

Answer:

The price must decrease, causing more buyers to buy and more sellers to sell.

Explanation:

The above statement is true about the "Invisible hands" influencing economic activity. Invisible hands work in the free market economy i.e. a market having no influence of government. Invisible Hand influence keeps prices low due to competition, competition keeps quality of products higher, producers make more profits and needs of the economy are met.