According to the concept of the "invisible hand," if Susie opens and operates a profitable childcare center, then
A)government should regulate the business to ensure quality.
B)the profit Susie earns indicates that she is overcharging for her services.
C)she has served society's interests by providing a desired good or service.
D)this demonstrates that consumer sovereignty is not present in this market.

Question

Quizplus · Accepted Answer

The "invisible hand," a term coined by Adam Smith, suggests that individuals pursuing their own interests can benefit society as a whole. In this case, if Susie's childcare center is profitable, it indicates that she is providing a service that is in demand, thereby serving society's interests. This concept relies on the idea that the market, through the forces of supply and demand, naturally guides resources to their most valued uses.

According to the Concept of the "Invisible Hand," If Susie