Final answer:
The law of supply and demand describes the relationship between the quantity of a good or service that suppliers are willing to produce and sell at different prices, and the quantity that consumers are willing to purchase at those prices.
Step-by-step explanation:
The law of supply and demand is a fundamental principle in economics. It explains the relationship between the quantity of a good or service that suppliers are willing to produce and sell at different prices, and the quantity that consumers are willing to purchase at those prices.
According to the law of supply and demand, when the price of a product increases, the quantity supplied also increases because suppliers are motivated to produce more in order to earn higher profits. On the other hand, when the price of a product decreases, the quantity supplied decreases as suppliers find it less lucrative to produce and sell.
Similarly, when the price of a product increases, the quantity demanded by consumers decreases because they are less willing or able to afford it. Conversely, when the price of a product decreases, the quantity demanded increases as consumers find it more affordable or desirable. The intersection of the supply and demand curves represents the equilibrium price and quantity in a market.