The law of supply and demand combines two fundamental economic principles describing how changes in the price of a resource, commodity, or product affect its supply and … See more

It may seem obvious that in any sale transactionthe price satisfies both the buyer and the seller, matching supply with demand. The interactions between supply, demand, a… See more

The law of demand holds that demand for a product changes inversely to its price, all else being equal. In other words, the higher the price, the lower the level of demand. Because b… See more

The law of supply relates price changes for a product with the quantity supplied. In contrast with the law of demand the law of supply relationship is direct, not inverse. The higher … See more

Also called a market-clearing price, the equilibrium price is the price at which demand matches supply, producing a market equilibrium acceptable to buyers and sellers… See more