What is the Invisible Hand?
The invisible hand is a metaphor for the way a free market functions to regulate itself. The components that appear to govern the market place are self interest, supply and demand, and competition. Manufacturers price their goods trying to compete with each other and the consumer helps to control the prices by either buying the product or not. The manufacturer tries to find a common point where he can charge enough for his product to make a good profit while not killing the demand for his product because consumers find it too expensive.
