According to Say's law
A) supply creates its own demand.
B) demand creates supply.
C) changes in supply create supply-side inflation.
D) changes in demand create demand-side inflation.

Question

Quizplus · Accepted Answer

Say's law states that supply creates its own demand, meaning that the production of goods generates income and ultimately demand for other goods. This theory suggests that there can never be a general glut in the economy as long as markets are allowed to function freely. Therefore, choice A is the best answer.

According to Say's Law