Question

What is Say’s Law? Who was Jean Baptiste Say? Using the graph of the product market in the classical model, graphically show the effects of Say’s Law. (What happens if the price level is too high?   What happens if the price level is too low?)

Answer 1

The Say's law of markets is an economic rule given by Say that says that production is the source of demand. According to Say's Law, when an individual produces a product or service, he or she gets paid for that work, and is then able to use that pay to demand other goods and services.

Jean-Baptiste Say was a French economist and businessman. He had mostly views that were liberal in nature and argued in favor of competition, free trade, and removing restraints on business.