What is the law of supply and demand and how does it affect prices in a market?
Answer 1
John Holden
The law of supply and demand is an economic theory that explains the relationship between the availability of a good or service (supply) and the desire for that good or service (demand). When demand exceeds supply, prices tend to rise. Conversely, when supply exceeds demand, prices typically fall. This dynamic helps balance the market, ensuring that resources are allocated efficiently.
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