self-regulating market

A self-regulating market is an economic system where supply and demand naturally balance each other without government intervention. When goods are scarce, prices tend to rise, encouraging more production and reducing demand. Conversely, when there is an oversupply, prices fall, prompting producers to cut back and consumers to buy more. This dynamic adjustment helps maintain equilibrium, ensuring resources are allocated efficiently. The concept relies on the idea that individual actions driven by profit and choice collectively guide the market toward stability and optimal distribution of goods and services.