Law of supply and demand

By | 2017-09-13T14:47:06+00:00 13th September 2017|

A theory explaining the interaction between the supply of a resource and the demand for that resource. The balance between the availability of a product and the desire (or demand) for that product defines the price. Generally, a low supply and a high demand increases price, and in contrast, the greater the supply and the lower the demand, the lower the price tends to fall.