Q.Write Say's "Law of Market".

Say's Law: 'supply creates its own demand', so there is no general glut.

Say's Law of Markets, given by the classical economist J.B. Say, is the foundation of the classical theory of employment. Its central proposition is that 'supply creates its own demand'. The reasoning is:

• Every act of production generates income (in the form of wages, rent, interest and profit) exactly equal to the value of the goods produced.
• This income is spent on buying goods and services.
• Therefore total demand always equals total supply, and there can never be a general overproduction (glut) or lasting involuntary unemployment. …