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Economics: Difference between revisions
→Supply & demand: Say's law
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* aggregate supply | * aggregate supply | ||
=== Supply & demand === | === Supply & demand === | ||
* Say's Law | |||
** from Jean-Baptiste Say, "A Treatise on Political Economy" (''Traité d'économie politique''), 1803 | |||
* states that production is the source of demand | |||
** production = making things, providing services or things of value) | |||
** i.e, demand for things necessarily follows their production or offering | |||
*** demand may pre-exist something, but nothing of value is exchanged until that thing is produced and offered | |||
** Say's law is criticized for ignoring "gluts" (supply exceeds demand) and monetary impacts (such as inflation or deflation, which can impact demand outside of supply) | |||
* in general, Say's law correctly identifies the source of exchanged value: something must be offered for value | |||
=== Tragedy of the Commons === | === Tragedy of the Commons === | ||
== Lesson Plans == | == Lesson Plans == | ||
* [[Economics & ethics lesson plan|Economics & ethics lesson plan]] | * [[Economics & ethics lesson plan|Economics & ethics lesson plan]] | ||