Principles of Microeconomics, 7th Edition

Published by South-Western College
ISBN 10: 128516590X
ISBN 13: 978-1-28516-590-5

Chapter 1 - Part I - Ten Principles of Economics - Questions for Review - Page 17: 6

Answer

The invisible hand is the unobservable, invisible market force that allows demand and supply in a free market to attain equilibrium automatically.

Work Step by Step

Invisible hand is a term coined by Adam Smith in his book "The Wealth of Nation" to describe the unintended social benefits of individual actions.
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