what is an example of the law of supply and demand 
gasoline consumption plunged with the onset of the covid 19 pandemic in 2020 and prices quickly followed because the industry ran out of storage space the price decline in turn served as a powerful signal to suppliers to curb gasoline production crude oil prices in 2022 then provided producers with additional incentive to boost output 45the bottom linethe law of supply and demand reflects two central economic principles that describe the relationship between price supply and demand the law of demand posits that demand declines when prices rise for a given resource product or commodity demand increases as prices fall on the supply side the law posits that producers supply more of a resource product or commodity as prices rise supply falls as prices fall the price at which demand matches supply is the equilibrium the point at which the market clears the law of supply and demand is critical in helping all players within a market understand and forecast future conditions 