Question

"Supply creates its own demand." Who propounded this law?

• A. J. B. Say
• B. J. S. Mill
• C. Keynes
• D. Ricardo

Hint:

The phrase "Supply creates its own demand" is synonymous with Say's Law.

Answer 1

The Correct Option is A

This famous dictum is the essence of Say's Law of Markets, attributed to the French classical economist Jean-Baptiste Say. The law suggests that the act of producing goods (supply) generates an equivalent amount of income (wages, profits, rent), which is then used to purchase other goods (demand). In this view, a general overproduction or glut in the market is not possible. John Maynard Keynes was a major critic of this law.