Law of Demand and Supply

Law of Demand and Supply

The Law of Demand

According to the law of demand, if other things remain equal, the demand of a good will decrease with the increase in the price of that good. It can also be said that if the price of the good will be higher, the quantity of that good will be lower.

The Law of Supply

According to the law of supply, the higher the price, the more quantities of the good will be supplied (Fisher, 2007). This is because the producers supply the goods more at a higher price as they are ...