Trip china for This, then, is an EQUILIBRIUM. If this is true for all products in the economy, then a market system tends to produce exactly what people want and for which they are willing to pay the cost. This is how a market system solves the problem of how to direct the actions of specialized workers. The self-sufficient farmer knows how much wheat to grow because he knows how much bread he wants. How does the specialized wheat farmer know how much wheat to grow, or even whether to grow wheat, rather than, say, oats, when he doesn’t even know how his wheat is going to be used? Smith’s answer is that he will be adequately guided by the price of wheat and the prices of his inputs. If he can earn more growing wheat than by doing something else, he can help himself and he will inadvertently serve society. Capital theory. Trip china 2016.