Question

explain how the invisible hand works to provide steaks to people in Manhattan.

Answer 1

Ans) Invisible hand is a metaphor which says that unseen market forces helps demand and supply to reach equilibrium. Everyone pursues their own self interest and there is freedom of production which works in better interest of society as a whole.

Here the producer rears cattle to obtain meat from it, in order to sell it in the market at profitable rates(freedom of production). That meat is then supplied to the stores who again sell things for their own profit. A buyer who loves steaks comes to the store and buys the steak (pursuing own self interest). In this way while everyone was pursuing their own self interest market reached the equilibrium.