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8 May, 2015 - 10:49

Adam Smith described pure capitalism as a society where individuals make isolated decisions based on selfish motives (profits) to buy, sell and produce various products, but these decisions turn out to be precisely what society wanted as if the isolated decisions were guided by some invisible hand.

Ten years ago, VCR's used to be very expensive: over one thousand dollars. Since then, the features and the variety of VCR's have considerably increased. At the same time, the prices have decreased by one half. This situation appears to have been created to benefit the consumers, but it was really created by the producers competing to gain market share and profits. Now DVD players are in demand.