Invisible hand

Invisible hand is all about how the owner runs their business by increasing or decreasing their product’s prices catch the consumer’s attention.

Invisible hand works well with two businesses competing against each other to get their profits and their customers. But in order for one business to gain more profits then the other, which business has to have the quality that the consumers demand or the right price that the consumers willing to pay for their demand. It’s up to the consumers choices.

For example of the invisible hand would be, two gas station competing against each other by increase/decrease the price of their gas per liter to change the buyer’s mind and give the consumer special like “For every $0.50 per litter, you will get a free cup of coffee”

The “monopoly” comes in play when ONLY one business is in the area, and consumes need those demand on their basis. So they will pay for whatever the product cost. In this case the supplier can increase the price to whatever they wish because they know that they don’t have to compete with other business.