Supply and demand

Capitalism is the most efficient economic system due to the free-market concept. The free-market system originated with Adam Smith and his self correcting mechanism the invisible hand. The free-market allows freedom of choice, and allows prices to stay stable and correct themselves due to competition, little government intervention, and supply and demand. <Tab/>Supply and Demand are the major driving force behind capitalism and the free-market. Supply and Demand allows consumers …

…example, when digital cameras came out they cost thousands of dollars for cameras that took picture with poor quality. Eventually more and more companies started making cameras. Prices eventually took a drop and now more consumers are buying them than ever. The demand increased due to a drop in prices and companies were competing for the most business. The company with the best camera and the cheapest price survived. This is the invisible hand theory.