Say's Law states that:
A. Supply creates its own demand.
B. Shifts of either supply or demand can achieve a given market equilibrium.
C. Wages and prices are inflexible, which prevents the achievement of market equilibrium.
D. Increased prices lead to increased supply.

Atoy manufacturer makes its own wind-up motors, which are then put into its toys. while the toy manufacturing process is continuous, the motors are intermittent flow. data on the manufacture of the motors appears below.annual demand (d) = 50,000 units daily subassembly production rate = 1,000setup cost (s) = $85 per batch daily subassembly usage rate = 200carrying cost = $.20 per unit per year(a) to minimize cost, how large should each batch of subassemblies be? (b) approximately how many days are required to produce a batch? (c) how long is a complete cycle? (d) what is the average inventory for this problem? (e) what is the total annual inventory cost (holding plus setup) of the optimal behavior in this problem?

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"in my opinion, we ought to stop making our own drums and accept that outside supplier's offer," said wim niewindt, managing director of antilles refining, n.v., of aruba. "at a price of $21 per drum, we would be paying $4.70 less than it costs us to manufacture the drums in our own plant. since we use 70,000 drums a year, that would be an annual cost savings of $329,000." antilles refining's current cost to manufacture one drum is given below (based on 70,000 drums per year):