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Here is a quote from The Wealth of Nations by Adam Smith:"It is not from the benevolence of the butcher, the brewer, or the baker that we expect our dinner, but from their regard to their own self-interest. We address ourselves not to their humanity but to their self-love, and never talk to them of our own necessities, but of their advantages."Does the point of view expressed by Smith help understand how markets function? Explain.

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jayilych4real

Answer:

Yes, it helps how markets function.

Explanation:

A market is a place where buying and selling of goods or services take place. It can be in a physical location or it can be over the Internet.

The main goal of a seller is to make profit from sales, so a seller won't sell a watch he bought $10.50 for $5.50 because he wants to do good to the society.

He'll put into consideration his expenses and factor in his expected profit before setting a selling price.

Every seller of a good or provider of service is out to make a profit and not make a loss so he can improve his standard of living.

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