Quick Definition

The law of supply and demand is a fundamental economic principle stating that the price of a good or service is determined by the quantity available (supply) and the desire of buyers for it (demand).

Examples

• 1When a new iPhone is released, high demand and limited supply often lead to higher prices.
• 2During a surplus of corn, the increased supply leads to lower prices if demand doesn't change.
• 3In real estate, a shortage of homes in a popular area can drive up property prices.
• 4During sales events like Black Friday, increased demand for discounted items can lead to stock shortages and subsequent price increases.

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