Question

In the Production-Oriented Stage, businesses operated on the assumption that supply would create its own demand.

Options

• True

• False

Answer 1

True

Explanation:

The production stage is based on the traditional economic principle known as Say’s Law, which states that “supply creates its own demand”. During this time, industrial enterprises were solely concerned with boosting output and production efficiency, convinced that if high-quality items were made broadly available and affordable, people would naturally buy them.