Answer:
The statement "Supply creates its own demand" is known as Say's Law.
Say's Law is an economic principle that suggests that the production and supply of goods and services in an economy automatically generate enough income and purchasing power to enable the consumption of those goods and services. In other words, when producers supply goods and services to the market, they also create the income necessary for consumers to demand and purchase those goods and services.
This principle was named after the French economist Jean-Baptiste Say, who first articulated this idea in the early 19th century. Say's Law is often associated with the concept of a self-regulating market economy, where the interaction of supply and demand leads to equilibrium.
Say's Law is often contrasted with the concept of "demand creates its own supply," which suggests that consumer demand drives production and supply in an economy. While both perspectives have their merits, Say's Law emphasizes the role of production and supply in generating income and purchasing power.
It is important to note that Say's Law is a theoretical concept and has been subject to debate among economists. Some argue that it may not hold true in all circumstances, especially during periods of economic downturns or recessions when there may be a lack of demand despite sufficient supply.
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