Is there a supply for every demand? Does a supply creates its own demand?

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Is there a supply for every demand? Does a supply creates its own demand?

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Answer 1

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Yes. Demand is defined as the quantity or a good or a service need by people for a price. So when a supplier identifies the demand for a good, he would supply for a mutually agreed price between supplier and consumer.

Yes. When a firm supplies good, it provides employment opportunities which increase the income. The increased income would make people to consume goods and thereby creating its own demand.

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Is there a supply for every demand? Does a supply creates its own demand?

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(3 Marks) Say's Law states that supply creates its own demand. What does this mean?

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Is there a supply for every demand? Does a supply creates its own demand?

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