Respuesta :
The law of supply and demand is an economic theory that explains how supply and demand are related to each other and how that relationship affects the price of goods and services.
It's a fundamental economic principle that when supply exceeds demand for a good or service, prices fall.
When supply exceeds demand, what happens to prices?
As the price goes down, the demand will increase, pushing the market toward equilibrium. Identify two ways the government can intervene to control prices. The government can impose price ceilings (rent control) or price floors (minimum wage).
Law of supply and demand :
The law of supply states that the quantity of a good supplied (i.e., the amount owners or producers offer for sale) rises as the market price rises, and falls as the price falls. Conversely, the law of demand (see demand) says that the quantity of a good demanded falls as the price rises
Why is law of supply and demand important?
Supply and demand have an important relationship because together they determine the prices and quantities of most goods and services available in a given market. According to the principles of a market economy, the relationship between supply and demand balances out at a point in the future.
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