Question

What is Say’s law?

Short answer

According to Say's law, supply is the source of demand.

Step-by-step solution

Concept introduction

Say's law states that supply can never surpass demand.

Explanation

Items cannot be overproduced in the long run because the producers of the commodities also produce the purchasing power to purchase other goods. Because every sale is a source of money for someone, the supply value must be matched by a demand value someplace else in the economy.