How the economy coordinates society’s independent economic actors

How does the economy coordinate society's independent economic actors.

Answer

The economy coordinate the society's independent economic actors by the forces of demand and supply. Each independent actor either demand or supply goods and services. The price is determined by the relative strength of demand and supply. So, if demand is relatively higher than supply, the price goes up and products and services are allocated to the buyers willing to pay the higher price. Therefore, allocation of resources takes place according to the willingness to pay by the buyers. sellers producers goods and services which are demanded by the buyers. Therefore, all independent economic actors are coordinated when they each pursue their own self-interest.

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