Answer:
The line at PF represents the price floor
The line at PE represents the equilibrium price
The line between points A and B represents excess supply
Explanation:
Adam Smith, a Scot and a philosopher who lived from 1723 to 1790, is considered the founder of modern economics. In Smith's time, philosophy was an all-encompassing study of human society in addition to an inquiry into the nature and meaning of existence. Deep examination of the world of business affairs led Smith to the conclusion that collectively the individuals in society, each acting in his or her own self-interest, manage to produce and purchase the goods and services that they as a society require. He called the mechanism by which this self-regulation occurs “the invisible hand,” in his groundbreaking book, The Wealth of Nations, published in 1776, the year of America's Declaration of Independence.
A democratic country like India: the citizens elect the representatives of the Parliament or the legislature which in turn elect the Prime Minister.
