According to Adam Smith, people are motivated to be as productive as possible based on their own –. In a market economy, – respond to both –. Goods and services are then exchanged, and resources are allocated to their highest-valued use as if guided by

Their own self interest. In a market economy Equilibrium price respond to both supply and demand. resources are allocated to their highest-valued use as if guided by an invisible hand

Explanation:

According to Adam Smith People are usually more motivated to be more productive when their self interest is taken care of in the production process or their interest is represented in the process. this could mean monetary compensation in the form of wages.

In a market economy a significant change in the demand and supply of  goods and services in the open market will cause a significant change in the equilibrium price of the commodity either to the right or left. and this leads to resources been allocated to their highest-valued use. the invisible hand is the market force that helps demand and supply to attain an equilibrium price

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