Say's law implies that
A) surpluses never occur.
B) surpluses or shortages are possible, but only for a short time.
C) shortages is a persistent phenomenon.
D) shortages never occur.

Question

Quizplus · Accepted Answer

Say's law, also known as the law of markets, states that supply creates its own demand. This means that if producers produce goods and services, they will ultimately be able to sell them because the money that consumers spend on these goods and services will end up in the hands of producers. However, surpluses or shortages are still possible in the short term due to changes in production or consumption patterns. Therefore, choice B is the best answer.

Say's Law Implies That