Say's law implies that
A)the willingness to purchase other goods is unrelated to the production of goods and services.
B)producing goods and services generates the means and the willingness to purchase other goods and services.
C)prices and wages are sticky downwards.
D)wages and prices are inflexible.

Question

Quizplus · Accepted Answer

Say's law states that the production of goods and services generates income, which creates a willingness and ability to purchase other goods and services. Therefore, option B is the correct choice as it correctly captures the essence of Say's law. Option A is incorrect as it suggests no relationship between production and consumption. Options C and D are incorrect as they do not relate to Say's law.

Say's Law Implies That