Hello, I need a bitof help understanding Say\'s Law. This is the question I need

Question

Hello, I need a bitof help understanding Say's Law. This is the question I needto answer: "One of the early economic 'laws' was calledSay’s Law which stated that supply creates its own demand. Give a personal example of how you have experienced supplycreating its own demand in your life. " Thanks for thehelp. Hello, I need a bitof help understanding Say's Law. This is the question I needto answer: "One of the early economic 'laws' was calledSay’s Law which stated that supply creates its own demand. Give a personal example of how you have experienced supplycreating its own demand in your life. " Thanks for thehelp. Thanks for thehelp.

Explanation / Answer

Another way of looking at Say's Law is that more production ofsomething creates more consumption, not the other way around. I am big into computers and their rapidly expanding processing andcomputing speeds and abilities. If the two big chip makers,Intel and AMD slowed their research and put out better chips afterlonger intervals, consumption would fall because productionslowed. However, they put out faster processors every 6months or so so demand is high and many upgrade their hardwareoften in order to have the best and fastest computers. Thiscycle shows how increase supply production (since advancingtechnology shifts the supply curve right) creates its ownincreasing demand. Hope this helps, and P.S. LoTR is AWESOME!!

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