Keynes turned Say on his head and instead stated that ‘demand creates its own supply'”. What constitutes the means of payment for commodities is simply commodities. Each person’s means of paying for the productions of other people consist of law of demand and supply pdf he himself possesses.
All sellers are inevitably, and by the meaning of the word, buyers. Principles of Political Economy, Book III, Chap. The production of commodities creates, and is the one and universal cause that creates a market for the commodities produced. Nothing is more true than that it is produce which constitutes the market for produce, and that every increase of production, if distributed without miscalculation among all kinds of produce in the proportion which private interest would dictate, creates, or rather constitutes, its own demand.
Of the Influence of Consumption On Production”, p. Say: The Story of a Mare’s Nest”. This page was last edited on 16 October 2016, at 20:05. A graph, with quantity on the X-axis and price on the X-axis. A red curve sloping downwards from left to right, labeled D, intersects a blue curve sloping Howard’s from left to right, labeled S. The D curve is shifting to the right. Alternatively,other things being constant,quantity demanded of a commodity is inversely related to the price of the commodity.