The concept of Say's law can be summed up by the phrase,
A) "supply creates its own demand."
B) "demand creates its own supply."
C) "supply and demand are equivalent concepts."
D) "supply and demand are irrelevant concepts."

Question

Quizplus · Accepted Answer

Say's law states that supply creates its own demand, meaning that the production of goods and services generates income which in turn creates demand for those same goods and services. This idea is based on the assumption of full employment and rational economic behavior, and is a fundamental principle in classical economics.

The Concept of Say's Law Can Be Summed Up by the Phrase