Answer to Question #80253 in Microeconomics for Diamond

Question

How does self-interest help achieve society’s economic goals? Think about your self-interest as a consumer. Use your personal testimonial as a consumer.

Answer 1

Every day we buy products and services. Many people want to buy quality goods and services. I also do. We all try to buy them as cheap as possible without losing an acceptable quality. This encourages manufacturers to monitor both prices and quality. As soon as the price grows and / or the quality falls, we will reduce the consumption of these goods or services. In addition, those manufacturers will not get profits, they will have to improve their products or lose everything.
I love chocolate very much. If the price for my chocolate increases or the quality falls, I will buy it in another producer. The old chocolate’s producer will not make profits and he will have to change something. He will have to improve quality and reduce the price. So, keeping my interest, I actually control the chocolate’s producer and I help achieve society’s economic goals.