In classical economics, Say's law, or the law of markets, is the claim that the production of a product creates demand for another product by providing something of value which can be exchanged for that other product. So, production is the source of demand.

2024年4月26日 · What Is Say's Law of Markets? Say's Law of Markets is a classical economic theory that says that the income generated by past production and sale of goods is the source of spending that...

Say's law, also known as Say's law of markets in economics, states that supply inevitably generates demand. As a result, the total output must invariably result in total demand. The law suggests increasing production is the key to economic growth rather than boosting demand.

Definition and explanation of Say's law - the production of goods creates its own demand. Quotes from Say, Keynes. Implications and criticisms of this economic theory.

An important element of classical economics is Say’s Law of Markets, after J.B. Say, a French economist who first stated the law in a systematic form. Briefly stated, this law means that ‘supply always creates its own demand.’.

2022年10月12日 · What Is Say’s Law? The most concise expression of Say’s Law—also called Say’s Law of Markets—comes from the English translation of his best-known work, the 1803 Traité d’économie politique (A Treatise on Political Economy): “Inherent in supply is the wherewithal for its own consumption.”

Say’s Law of Markets states that the supply of a good or service creates demand for that good or service, i.e., supply creates its own demand.

2024年3月22日 · Say’s Law, also known as the law of markets, is a principle attributed to the 19th-century French economist Jean-Baptiste Say. The law suggests that “supply creates its own demand.” In other words, Say proposed that the production of goods and services within an economy creates a demand for those goods and services equivalently.

The key to understanding Say’s Law of Markets is that it is production that must come first. Demand, or consumption, follows from the production of wealth. To a degree, Say’s Law is just an extension of Adam Smith’s insight that the division of labor is limited by the extent of the market.

Say’s law, also known as Say’s law of markets in Classical economics, states that supply itself creates its own demand. According to Say’s law, aggregate production necessarily creates an equal amount of aggregate demand.