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miv72 [106K]
3 years ago
14

according to adam smith and other classical economists, why is the economic theory supporting market economies(or capitalism) mu

ch more realistic than theories supporting sommand economies?
Physics
1 answer:
grin007 [14]3 years ago
3 0
Classical economics is a branch of the economics that states that economy is always moving towards equilibrium, which means that a change in supply will eventually be matched by a change in demand. The father of classical economics  is Adam Smith with his book<span> The Wealth of Nations in 1776.</span>
The economic theory supporting market economies (or capitalism) is much more realistic than theories supporting command economiesIt is based on self interest.
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zimovet [89]

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From the question we are told that

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substituting value  at R = 456

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