1. Say’s law of MARKET

2. INRODUCTION
Say’s law of market states that supply creates its on demand which means
AD=AS

3. Define
J.B. Say,’ Supply creates its own demand.”

4. Assumptions Flexible prices Money – a veil No hoarding
State is neutral
Perfect competition
Long period
Production according to consumer preference
Supply of labour and capital is perfectly elastic

5. Explanation Say’s law and barter economy
Say’s law and monetary economy

6. Implications General over-production is impossible
General unemployment is impossible
Automatic adjustment
Equality b/w saving and inv.
Money is but a veil
Partial over production and partial unemployment are possible
Policy implication ( Free Economy)