what is supply and demand 
the law of supply and demand outlines the interaction between a buyer and a seller of a resource supply and demand law says that sellers will supply less of a product or resource as price decreases while buyers will buy more and vice versa until an equilibrium price and quantity are reached it incorporates both the law of supply and the law of demand 2the bottom linethe law of supply states that a higher price for a good or service will lead producers to supply more of that good or service to the market this is because businesses want to increase their profits when they can get a higher price for something they will produce more of it than they will of other lower priced goods and services on the other hand if prices fall suppliers won t produce as much the law of supply is one part of the law of supply and demand 