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Friedman explains how markets and voluntary exchange organize activity and enable people to improve their lives. He also explains the price system.

60-second animated explainer of Smith's invisible hand / self-regulating markets.

Hayek explains how free-market prices guide future economic activity.

A price acts as a message about how scarce or valuable something is. When prices go up, it tells producers to make more and consumers to use less. When prices fall, the opposite happens — without anyone giving the order.

Supply and demand describes how prices change based on how much of something exists and how many people want it. When demand increases or supply becomes limited, prices usually rise. When supply increases or demand falls, prices tend to drop.

Twentieth-century Austrian economist who argued that prices carry dispersed knowledge no central planner can gather — the mechanism behind market coordination.