Herein, what is the invisible hand example? Description: The phrase invisible hand was introduced by Adam Smith in his book ' The Wealth of Nations'. One may also ask, what is the invisible hand guided by? Definition of 'Invisible Hand' Definition: The unobservable market force that helps the demand and supply of goods in a free market to reach equilibrium automatically is the invisible hand. The invisible hand is a theory of economics that refers to the self-regulating nature of the marketplace in determining how resources are allocated based on individuals acting in their own self-interest. Keeping this in consideration, what did the invisible hand mean? For Smith, the Invisible hand was created by the conjunction of the forces of self-interest, competition, and supply and demand, which he noted as being capable of allocating resources in society. In economics, the Invisible hand is the term economists use to describe the self- regulating nature of the marketplace.
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