Describe how the law of supply and demand works. use at least one example in your answer.

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Business

Janet

9 October, 03:36

Describe how the law of supply and demand works. use at least one example in your answer.

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Lilyana Huynh · Answer 1

The law of supply and demand: If the supply of something is low but the demand is high, then the price will tend to increase. If the supply is high but the demand is low, the price will tend to decrease. An example of this would be fuel prices, when the demand for fuel is high (shortages, busy travel weekends etc) the price will typically increase and reflect the law of supply and demand.