market vs demand economy

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Written by:

Jessica S


Date added:

December 17, 2015








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9 / 2464


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The first question that needs to be answered in the creation of an economy is "what shall be produced?" Every individual has a certain amount of needs and a certain amount of desires, which they are all in the end willing to work for ? in a capitalist economy, the government leaves the meeting of these needs to the actual people...
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The theory is that anyone who wants to succeed in a capitalist world, driven by Adam Smith's "invisible hand", will eventually discover these needs that need to be met by the people and sell them, mainly for the good of the entrepreneur himself, but ideally (you'll hear that word a lot during this comparison) for the good of the consumers and the employees as well ? basically, if you know that people want a certain product, you know that people will buy that certain product, so you can guarantee your own success as well as the fulfillment of those consumers in need (which is usually a secondary motive)...
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