Invisible hand theory

Invisible hand theory

Introduction

The concept of invisible hand theory is coined by the father of economist Adam Smith, which is broadly accepted by contemporary economists to explain the market forces. According to invisible hand theory, each of us are acting in own self-interest, generates the demand of goods and services which compel the supplier to produce the good with efficient manner. The person does not tend to promote the public interest, nor does he know how much he is promoting it. He intends for his own interest which leads to invisible hand promotion, that is not the part of his ...