Question

Daniel has decided to open his own bakery using locally sourced ingredients and supplies. He provides income and jobs to local suppliers. He also provides his community with a place to buy delicious baked goods. This is an example of:

Answer 1

Answer:

When Daniel decides to open his bakery using locally sourced ingredients and supplies. Providing income and jobs to local suppliers, He also provides his community with a place to buy delicious baked goods.

He is performing local entrepreneurship called the invisible hand.

Explanation:

All right, this type of entrepreneurship sounds like some sort of terror movie but actually, it has a deep meaning. It was brought up by Adam Smith himself and it comprehends a metaphor in which the act of how someone can benefit society by performing different commercial acts for his or her interest. In our case, he is helping the local market and producers, while he is also obtaining a benefit.

Answer 2

Answer: The invisible hand

Explanation: Invisible hand can be defined as those unobservable market forces which helps the forces of demand and supply to reach to an equilibrium level.

In the given case, Daniel is giving work to local suppliers and jobs to residents as well as producing demand in the market by its products, thus, we can conclude that the given case is an example of invisible hand.