Supply and Demand

Meaning

The law of supply and demand is a theory that explains the interaction between the sellers of a resource and the buyers for that resource. The theory defines what effect the relationship between the price of the product the willingness people to either buy or sell the product. Generally, as price increases people are willing to supply more and demand less and vice versa when the price falls.

Context

The law of supply and demand, one of the most basic economic laws, ties into almost all economic principles in some way. In practice, people's willingness to supply and demand a good determines the market equilibrium price, or the price where the quantity of the good that people are willing to supply just equals the quantity that people demand. However, multiple factors can affect both supply and demand, causing them to increase or decrease in various ways.

RE: https://www.investopedia.com/terms/l/law-of-supply-demand.asp