The demand for a product is based on how much people want that product.
The supply of the product can change with time, which will affect the price and availability of that product. This relationship between supply and demand is called “the law of supply.”
The law of supply is the basic idea that when there are a lot more products than people who want them, the price will be lower.
When fewer items exist in comparison to those requesting it, then prices rise because manufacturers can charge for scarcity.
The law of supply has many applications and implications in different industries.
It offers an explanation for how markets adjust themselves given changes in conditions or circumstances.
An increase in demand would cause prices to go up if not accompanied by an increase in supply- which could happen if all suppliers stop producing at once if they don’t have enough time to scale production back down before running out!
This concept also works with decreasing demand: as demand decreases, so do prices due to increased availability of goods.