GENERAL KNOWLEDGE

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: -The law of supply and demand combines two fundamental economic principles describing how changes in the price of a resource, commodity, or product affect its supply and demand. As the price increases, supply rises while demand declines. Conversely, as the price drops supply constricts while demand grows.

Detailed explanation-3: -The Law of Supply gives the relationship between the price of a commodity and its supply. According to this law, other things being equal, the quantity of a commodity supplied varies directly with its price. Hence, the relationship between price and supply is positi. Q.