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Unformatted text preview: exceeding demand, then assuming that the good he supplies is extremely perishable (the supply of which cannot be withdrawn or postponed), he will lower the price somewhat and thus create sufficient demand for it. So far so good. However, it is important to remember the classical economists and Say’s Law were concerned not with a single good and a single supplier of it. The law is a generalization at the macro-level where all varieties of goods and services are supplied. This law in particular meets with serious limitations when an attempt is made to make it applicable to the labor market and to the conditions of employment level....
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This note was uploaded on 11/17/2011 for the course EC ec 201 taught by Professor - during the Fall '10 term at Montgomery.
- Fall '10