Asked by
Mathika Wijesekara
on Oct 13, 2024Verified
Say's law states that supply creates its own demand because
A) there is always a buyer for every good produced.
B) supply prices are always equal to demand prices.
C) prices are such that,in the short run,producers know exactly how much to produce.
D) the act of producing creates an income sufficient to purchase all that is produceD.
Say's Law
Say's Law, also known as the law of markets, is an economic principle which suggests that production creates its own demand, positing that a supply of goods will ultimately lead to the creation of an equivalent demand.
Demand Prices
Prices of goods and services determined by the demand for them, often influenced by consumers' willingness and ability to pay.
Supply Prices
The costs associated with producing goods and services, which can influence the supply levels offered by producers.
- Explain the concepts of Say's law and the reasons for its critique by Keynesian economics.
Verified Answer
JG
Learning Objectives
- Explain the concepts of Say's law and the reasons for its critique by Keynesian economics.