"Supply creates its own demand" implies that
A) the very act of supplying a particular level of goods and services will not necessarily equal the level of goods and services demanded.
B) the very act of demanding a particular level of goods and services necessarily equals the level of goods and services supplied.
C) the very act of supplying a particular level of goods and services necessarily equals the level of goods and services demanded.
D) the government will buy up any surplus of goods and services in a country to avoid economic problems.
C
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Briefly explain the major argument of the factor endowment trade theory
What will be an ideal response?
When economic structuralists witness powerful countries attempting to take control of natural resources in weaker countries, they see this as a
a. normative collaboration. b. triumph of hegemony. c. tragedy of the commons. d. new colonialism
If domestic saving is less than domestic investment, then a country will have a ________ and positive net capital ________.
A. trade surplus; outflows B. trade deficit; inflows C. trade balance; inflows D. trade deficit; outflows
In Figure 2.1, a "P*" for equilibrium price would go in
A. Box 1. B. Box 2. C. Box 3. D. Box 4.