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Homework answers / question archive / According to Say's law: A
According to Say's law:
A. when price goes up, supply goes up.
B. it is better to give than receive.
C. demand creates its own supply.
D. supply creates its own demand.
E. demand and supply are mutually independent.
Ans: Supply creates its own demand.
Explanation
Say's law states that the production of a product creates demand for another product by providing income to the factors of production which can be exchanged for the other product. Therefore, production is source of demand.
Thus, option D is correct answer.
