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

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?​
A)​The price must decrease,causing more buyers to buy and less sellers to sell.
B)​The price must decrease,causing more buyers to buy and more sellers to sell.
C)​The price must increase,causing less buyers to buy and more sellers to sell.
D)​The price must increase,causing less buyers to buy and less sellers to sell.

Quizplus · Accepted Answer

When a product has lower demand than supply, the price must decrease to incentivize more buyers to buy and less sellers to sell. This results in an increase in demand and a decrease in supply until the market reaches equilibrium. The "invisible hand" in this case is the market forces of supply and demand, which work together to determine the price at which goods will be bought and sold.

Which of the Following Is True About How the "Invisible