The Notion That "Supply Creates Its Own Demand" Is Known

question 95

Multiple Choice

The notion that "supply creates its own demand" is known as:

• A) Say's law.
• B) sticky wages.
• C) a Keynesian argument
• D) animal spirits.

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Definitions:

Price

The monetary worth anticipated, necessitated, or provided in compensation for an item.

Equivalent Variation

A measure in economics that captures the change in income needed to reach a utility level after a price change, keeping welfare constant.

Utility Function

A mathematical model used in economics to represent a consumer's preference ranking for different bundles of goods, showing satisfaction levels.

Consumption

The act of using goods and services to satisfy needs or wants.