The tendency of markets to automatically gravitate toward equilibrium is an application of which core principle?

The tendency of markets to automatically gravitate toward equilibrium is an application of : The Incentive Principle

In economic , incentive principle refers to the assumption that every action that all people take is based on the amount of benefit that they will receive the most. This situation will keep the supply and demand curve keep moving until it pulled out to the equilibrium spot.

Answer flexible interest rates in the credit market cause any consumer saving to be exactly offset by business investment;