According to Adam Smith's Invisible Hand Theory, what is the result of self-interested actions by buyers and sellers?

The result of self-interested actions by buyers and sellers, as described by Adam Smith's Invisible Hand Theory, can lead to an efficient allocation of resources. This theory posits that individuals pursuing their own economic interests inadvertently contribute to the overall good of society. When buyers seek to acquire goods at the best price and sellers aim to maximize their profits, their interactions in the marketplace encourage competition and innovation, ultimately steering resources toward their most valued uses.

As buyers express their demand and sellers respond with supply, the market adjusts itself based on these self-interested behaviors. This dynamic interplay helps to ensure that resources are allocated in a manner that reflects individual preferences and overall market needs. In a well-functioning market, this can lead to an optimal distribution of resources where production aligns with consumer demand, promoting overall economic efficiency.

The other choices do not align with the primary focus of the Invisible Hand Theory. Market monopolies may arise in certain contexts, but they are not the result of the self-regulating nature of competitive markets that the theory highlights. The theory does not inherently suggest that resources become scarce; rather, it assumes a balance of supply and demand that can lead to resource availability. Additionally, while demand can at times exceed supply, this situation is often a