According to adam smith it is in fact competition and

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According to Adam Smith, it is, in fact, competition and our own self-interest that keep the marketplace functioning.
Self-Interest Adam Smith was a Scottish social philosopher who, in 1776, published a book titled The Wealth of Nations , in which he described how the market functions. Smith observed that an economy is made up of countless individual transactions. In each transaction, the buyer and seller consider only their self-interest, or their own personal gain. Self-interest, in other words, is the motivating force in the free market. Competition Consumers (households), in pursuit of their self-interest, have the incentive to look for lower prices. An incentive is the hope of reward or the fear of punishment that encourages a person to behave in a certain way. Adam Smith observed that people respond predictably to both positive and negative incentives. Firms, meanwhile, seek to make greater profits by increasing sales. Manufacturers also have a second incentive—to make the most profit. What keeps manufacturers’ pursuit of profit from causing prices to skyrocket? Consumers, pursuing their self-interest, will buy the lower-price. Economists call this struggle among producers for the dollars of consumer’s competition. While self-interest is the motivating force behind the free market, competition is the regulating force. Incentives come in two forms. Profit is a monetary incentive, or an incentive that rewards in the form of money. Nonmonetary incentives reward consumers and business in other ways, such as gifts, services, and other goods. The Invisible Hand Self-interest and competition work together to regulate the marketplace. Self-interest spurs consumers to purchase certain goods and services and firms to produce them. Competition causes more production and moderates firms’ quests for higher prices. The overall result is that consumers get the products they want at prices that closely reflect the cost of producing them. All of this happens without any central plan or direction.
Adam Smith called this phenomenon “the invisible hand of the marketplace.” Advantages of the Free Market Competition and the pursuit of self-interest serve the public interest. The free market, on its own, meets many economic goals. 1. Economic efficiency Because it is self regulating, a free market economy responds efficiently to rapidly changing conditions. Producers make only what consumers want, when they want it, and generally at prices they are willing to pay. 2. Economic freedom Free market economies have the highest degree of economic freedom of any system. This includes the freedom of workers to work where they want, of firms to produce what they want, and of individuals to consume what they want. 3. Economic growth Because competition encourages innovation, free markets encourage growth. Entrepreneurs are always seeking profitable opportunities, contributing new ideas and innovations.

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