BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -The law of supply and demand is the theory that prices are determined by the relationship between supply and demand. If the supply of a good or service outstrips the demand for it, prices will fall. If demand exceeds supply, prices will rise.

Detailed explanation-2: -With no immediate change in supply, the effect on price comes from a movement along the supply curve. An inward shift of demand causes price to fall and also the quantity exchanged to fall. The amount of change in price and quantity, from one equilibrium to another, is dependent upon the elasticity of supply.

Detailed explanation-3: -The law of supply relates price changes for a product with the quantity supplied.

Detailed explanation-4: -The law of supply states that a higher price leads to a higher quantity supplied and that a lower price leads to a lower quantity supplied.

Detailed explanation-5: -Alfred Marshall After Smith’s 1776 publication, the field of economics developed rapidly, and the law of supply and demand was refined. In 1890, Alfred Marshall’s Principles of Economics developed a supply-and-demand curve that is still used to demonstrate the point at which the market is in equilibrium.