posted by Camilla on .
Please help me with this it's about the invisible hand here's the question.
Two family-style restaurants are located in the same city block. I oreder to stay competitive, the prices are kept low and the quality of the food and service is excellent. Is the 'invisible' hand principle at work in this scenario?
Sorry the second sentence stars with In order
Yes. That's a good example of the invisible hand principle.
Can you explain why so I can understand it better thanks
Sorry I had the wrong name
Each of the owners is acting for his own good by providing excellent food and service at competitive prices. This technique also serves the public good.