Law of Supply and Demand

In microeconomics, supply and demand is an economic model of price determination in a market. It postulates that, holding all else equal, the unit price

quantity of supply at a given price. The law of supply and demand states that, for a given product, if the quantity demanded exceeds the quantity supplied, then

by definition of the law of demand. The law of demand also works together with the law of supply to determine the efficient allocation of resources in

argued that this law of markets implies that a general glut (a widespread excess of supply over demand) cannot occur. If there is a surplus of one good, there

producers receive for a product. Following the Law of Supply and Demand, as the price to consumers increases, and the price received by suppliers decreases