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9. When Adam Smith talked about "the invisible hand" he argued that: a. High transaction costs normally prevent markets from achieving equilibrium. b. Prices, in the long run, end up where both fairness and efficiency are achieved. c. Changing prices leads to an "end" which buyers and sellers are not totally pleased with but one that is efficient. d. e. f. Create mutually agreed upon prices over time if the market is subsidized. As prices increase, demand falls, but supply rises, creating an equilibrium outcome. Self-interested activities help eliminate shortages and surpluses if price ceilings and pric floors are effectively utilized.

9. When Adam Smith talked about "the invisible hand" he argued that: a. High transaction costs normally prevent markets from achieving equilibrium. b. Prices, in the long run, end up where both fairness and efficiency are achieved. c. Changing prices leads to an "end" which buyers and sellers are not totally pleased with but one that is efficient. d. e. f. Create mutually agreed upon prices over time if the market is subsidized. As prices increase, demand falls, but supply rises, creating an equilibrium outcome. Self-interested activities help eliminate shortages and surpluses if price ceilings and pric floors are effectively utilized.

Essentials of Economics (MindTap Course List)
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter1: Ten Principles Of Economics
Section: Chapter Questions
Problem 4CQQ
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9. When Adam Smith talked about "the invisible hand" he argued that: a. High transaction costs normally prevent markets from achieving equilibrium. b. Prices, in the long run, end up where both fairness and efficiency are achieved. c. Changing prices leads to an "end" which buyers and sellers are not totally pleased with, but one that is efficient. d. Create mutually agreed upon prices over time if the market is subsidized. e. As prices increase, demand falls, but supply rises, creating an equilibrium outcome. f. Self-interested activities help eliminate shortages and surpluses if price ceilings and price floors are effectively utilized.
Transcribed Image Text:9. When Adam Smith talked about "the invisible hand" he argued that: a. High transaction costs normally prevent markets from achieving equilibrium. b. Prices, in the long run, end up where both fairness and efficiency are achieved. c. Changing prices leads to an "end" which buyers and sellers are not totally pleased with, but one that is efficient. d. Create mutually agreed upon prices over time if the market is subsidized. e. As prices increase, demand falls, but supply rises, creating an equilibrium outcome. f. Self-interested activities help eliminate shortages and surpluses if price ceilings and price floors are effectively utilized.
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