Which of the following statements is NOT true about Say's law?
A) Desired expenditures will equal actual expenditures.
B) Surpluses will be eliminated by falling prices and shortages will be eliminated by increasing prices.
C) People produce more goods than they want for their own use only if they seek to trade them for other goods.
D) Markets would be regularly hit by severe shortages and surpluses.

Question

Quizplus · Accepted Answer

Say's law argues that supply creates its own demand, therefore there won't be severe shortages and surpluses. Choice D is the only statement that contradicts Say's law.

Which of the Following Statements Is NOT True About Say's