Subtitles section Play video Print subtitles Here's how it works: the prices we're willing to pay send key signals and Smith used a baker as an example. Hi, this all looks delicious... Could I have a cup of coffee? Yeah, of course. And a scone, please? Thank you. But let's say we all want scones, and the baker keeps running out, well then... she can charge a bit more. Seeing the demand and money to be made, other bakers will start offering scones. All throughout the supply line, people spring into action. Farmers see that bakers are buying wheat so they plant their fields, and up production. Truckers see money to be made in delivering wheat to bakers, so they buy trucks and hire drivers. Thank you. So...we vote with our wallets, and all around the world, people spring into action, to satisfy our demands. No one orders them to do this, but every purchase sends a message. As the supply increases, competition forces prices down. Fewer bakers bake scones and things stabilize as supply meets demand dynamically and automatically. This all happens without government intervention, without any trade commissar dictating quotas. This is Smith's invisible hand at work; it guides large businesses and even a small baker.
B1 US baker supply demand wheat smith invisible The Invisible Hand - Supply & Demand 75 9 Mei posted on 2017/08/20 More Share Save Report Video vocabulary