Say's Law Is a Doctrine Which States

question 55

Multiple Choice

Say's Law is a doctrine which states

• A) wages and prices rise together.
• B) unemployment and prices self-adjust.
• C) investment and prices increase together.
• D) supply creates its own demand.

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Definitions:

Profits

The financial gain made in a transaction or the operation of a business after deducting all expenses.

Pure Monopoly

A market structure where a single seller controls the entire market for a particular good or service, with no close substitutes.

Fair-return Price

A price that allows a company to cover its costs and make a reasonable profit.

Short Run

A period in economics where at least one input is considered fixed in the production process.