As regards Says' Law that production precedes supply, I had a brief arguement with Professor Barron that demand preceded both. One does not decide to produce a good or service until demand, or need, is perceived by the producer. Of course one might argue that there was no demand for home computers or cellphones, etc., but my layman's simplistic response would be that consumers perceived a need for the functions that these items could more productively deliver. Where is my circular reasoning wrong?
As regards Says' Law that production precedes supply, I had a brief arguement with Professor Barron that demand preceded both. One does not decide to produce a good or service until demand, or need, is perceived by the producer. Of course one might argue that there was no demand for home computers or cellphones, etc., but my layman's simplistic response would be that consumers perceived a need for the functions that these items could more productively deliver. Where is my circular reasoning wrong?