WORLD HISTORY

Detailed explanation-1: -Adam Smith dealt extensively with the topic in his 1776 epic economic work, The Wealth of Nations . Often referred to as the Father of Economics, Smith explained the concept of supply and demand as an “invisible hand” that naturally guides the economy.

Detailed explanation-2: -Overview. Economist Alfred Marshall provided the graphical illustration of the law of demand. This graphical illustration is still used today to define and explain a variety of other concepts and theories in economics.

Detailed explanation-3: -Adam Smith was among the first philosophers of his time to declare that wealth is created through productive labor, and that self-interest motivates people to put their resources to the best use. He argued that profits flowed from capital investments, and that capital gets directed to where the most profit can be made.

Detailed explanation-4: -Law of Demand Explained Law of demand is a principle of economics which states that a rise in price would be met with a decrease in the quantity demanded of the product. This law was first stated by Charles Davenant in 1699.

Detailed explanation-5: -Dome (1994) states that Smith’s theory of economic growth consists of a rise in the productivity of labour by means of the division of labour, and an increase in productive labour by way of capital accumulation.