Question

Which one of the following statements defines the Say's Law of Market?

• A. Supply creates its own demand.
• B. Everything else being equal, producers offer to sell more of a product at a higher price than at a lower price.
• C. Everything else being equal, consumers buy more of a product as its price falls and less as its price rises.
• D. Aggregate supply in a market is always equal to aggregate demand.

Hint:

Remember that Say's Law was later challenged by J.M. Keynes during the Great Depression of the 1930s.
Keynes argued that demand creates supply (Effective Demand), and that saving can lead to underemployment equilibrium.

Answer 1

The Correct Option is A