Fourteen years ago, Sergio noticed that a lot of people who bought personal computers did not know much about how to use them and frequently suffered system crashes and other aggravations. He decided he could earn a nice profit by starting a consulting business to help other people overcome their computer woes. Although the business struggled at first, it has experienced a good deal of success for the past five years. Sergio has many satisfied customers, and the business has grown to the point where he now employs several workers. Sergio's experience is an example of:

Question

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Sergio's experience exemplifies the invisible hand concept, which suggests that in a free market, individuals pursuing their self-interest will indirectly promote the interest of society as a whole through the allocation of resources. Sergio saw a need for computer troubleshooting services, and by starting his business, he fulfilled that need and created value for himself and his customers. The fact that his business has grown and expanded is an example of the invisible hand at work, as his success came from fulfilling a consumer demand in the marketplace.

Fourteen Years Ago, Sergio Noticed That a Lot of People