Describe the mechanism by which supply creates its o’si1 demand.

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Answer 1

Textbook Question

Chapter 24, Problem 1SCQ

Describe the mechanism by which supply creates its o’si1 demand.

Expert Solution & Answer

To determine

Mechanism by which supply creates its own demand.

Explanation of Solution

It is based on criteria that someone’s expenditure is another person’s income. Supply of goods requires combination of inputs which are used for production of goods and services. These inputs are called factor of production. These are Land, Labor, capital, entrepreneurship. Combination of factor inputs produces goods, which is considered as production activity. Firms or producers supply goods to the consumers who are demanders of goods. As income is earned by these factor inputs in the form of wages, profits, interest etc. They use such income for demand of another goods and services.

So, supply of goods creates income which is used to demand other goods and services in an economy.

Economics Concept Introduction

Say’s Law states that” Supply creates its own demand”.

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Answer 2

Textbook Question

Chapter 24, Problem 1SCQ

Describe the mechanism by which supply creates its o’si1 demand.

Expert Solution & Answer

To determine

Mechanism by which supply creates its own demand.

Explanation of Solution

It is based on criteria that someone’s expenditure is another person’s income. Supply of goods requires combination of inputs which are used for production of goods and services. These inputs are called factor of production. These are Land, Labor, capital, entrepreneurship. Combination of factor inputs produces goods, which is considered as production activity. Firms or producers supply goods to the consumers who are demanders of goods. As income is earned by these factor inputs in the form of wages, profits, interest etc. They use such income for demand of another goods and services.

So, supply of goods creates income which is used to demand other goods and services in an economy.

Economics Concept Introduction

Say’s Law states that” Supply creates its own demand”.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Textbook Question

Chapter 24, Problem 1SCQ

Describe the mechanism by which supply creates its o’si1 demand.

Expert Solution & Answer

To determine

Mechanism by which supply creates its own demand.

Explanation of Solution

It is based on criteria that someone’s expenditure is another person’s income. Supply of goods requires combination of inputs which are used for production of goods and services. These inputs are called factor of production. These are Land, Labor, capital, entrepreneurship. Combination of factor inputs produces goods, which is considered as production activity. Firms or producers supply goods to the consumers who are demanders of goods. As income is earned by these factor inputs in the form of wages, profits, interest etc. They use such income for demand of another goods and services.

So, supply of goods creates income which is used to demand other goods and services in an economy.

Economics Concept Introduction

Say’s Law states that” Supply creates its own demand”.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Textbook Question

Chapter 24, Problem 1SCQ

Describe the mechanism by which supply creates its o’si1 demand.

Expert Solution & Answer

To determine

Mechanism by which supply creates its own demand.

Explanation of Solution

It is based on criteria that someone’s expenditure is another person’s income. Supply of goods requires combination of inputs which are used for production of goods and services. These inputs are called factor of production. These are Land, Labor, capital, entrepreneurship. Combination of factor inputs produces goods, which is considered as production activity. Firms or producers supply goods to the consumers who are demanders of goods. As income is earned by these factor inputs in the form of wages, profits, interest etc. They use such income for demand of another goods and services.

So, supply of goods creates income which is used to demand other goods and services in an economy.

Economics Concept Introduction

Say’s Law states that” Supply creates its own demand”.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Textbook Question

Answer 6

Textbook Question

Answer 7

Expert Solution & Answer

To determine

Mechanism by which supply creates its own demand.

Explanation of Solution

It is based on criteria that someone’s expenditure is another person’s income. Supply of goods requires combination of inputs which are used for production of goods and services. These inputs are called factor of production. These are Land, Labor, capital, entrepreneurship. Combination of factor inputs produces goods, which is considered as production activity. Firms or producers supply goods to the consumers who are demanders of goods. As income is earned by these factor inputs in the form of wages, profits, interest etc. They use such income for demand of another goods and services.

So, supply of goods creates income which is used to demand other goods and services in an economy.

Economics Concept Introduction

Say’s Law states that” Supply creates its own demand”.

Answer 8

Expert Solution & Answer

To determine

Mechanism by which supply creates its own demand.

Explanation of Solution

It is based on criteria that someone’s expenditure is another person’s income. Supply of goods requires combination of inputs which are used for production of goods and services. These inputs are called factor of production. These are Land, Labor, capital, entrepreneurship. Combination of factor inputs produces goods, which is considered as production activity. Firms or producers supply goods to the consumers who are demanders of goods. As income is earned by these factor inputs in the form of wages, profits, interest etc. They use such income for demand of another goods and services.

So, supply of goods creates income which is used to demand other goods and services in an economy.

Economics Concept Introduction

Say’s Law states that” Supply creates its own demand”.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

To determine

Mechanism by which supply creates its own demand.

Answer 12

Explanation of Solution

It is based on criteria that someone’s expenditure is another person’s income. Supply of goods requires combination of inputs which are used for production of goods and services. These inputs are called factor of production. These are Land, Labor, capital, entrepreneurship. Combination of factor inputs produces goods, which is considered as production activity. Firms or producers supply goods to the consumers who are demanders of goods. As income is earned by these factor inputs in the form of wages, profits, interest etc. They use such income for demand of another goods and services.

So, supply of goods creates income which is used to demand other goods and services in an economy.