WORLD HISTORY

Detailed explanation-1: -The law of supply and demand is a basic economic principle that states that when there is more of a good available, the price of the good will go down; when there is less of a good available, then the price of the good will go up.

Detailed explanation-2: -The law of supply and demand defines the relationship between the price of a given good or product and the willingness of people to either buy or sell it. Generally, as the price of a good increases, people are willing to supply more and demand less.

Detailed explanation-3: -Adam Smith was among the first philosophers of his time to declare that wealth is created through productive labor, and that self-interest motivates people to put their resources to the best use. He argued that profits flowed from capital investments, and that capital gets directed to where the most profit can be made.

Detailed explanation-4: -The law of demand is a fundamental principle of economics that states that at a higher price, consumers will demand a lower quantity of a good. Demand is derived from the law of diminishing marginal utility, the fact that consumers use economic goods to satisfy their most urgent needs first.

Detailed explanation-5: -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.