The "invisible hand" concept refers to the . guiding function of prices in a market system. implicit influence that the government has on the actions of firms . underlying money flows that promote the trading of goods and services. regulatory structure that markets must operate in.

The price transfer information cross the agent which, organize around them, the price of a good made it more profitable than other, which generate more people diving into the business. This in the end lower the price as there are more competition, and causes agent to leave the market and move to another thus, allocating resources without explicit regulatory structure or goverment actions. Same concepts occur with the consumer, if the price of a good is lower, they will prefer to purchase it over other with are more expensive. This will send the signal to produced to generate more units of this goods and decrease the output of goods which are not consumed as much.