The invisible hand refers to the concept in economics where the market forces of supply and demand, without any external intervention, guide resources to their most efficient use. The invisible hand is driven by self-interest and competition, resulting in an optimal allocation of goods and services. However, in the case of price controls on bacon due to rising pork prices, the invisible hand cannot solve the problem because it is based on free market principles and limited government intervention. Imposing price controls disrupts the market equilibrium by artificially setting prices below the market equilibrium, leading to shortages, reduced supply, and potentially lower quality products.
