human
Can you explain what the law of supply and demand means?
assistant
The law of supply and demand is an economic principle that explains how the price of goods and services are determined in a competitive market. It states that the price of a product will increase when the demand for it is higher than the supply of the product, and it will decrease when the supply of the product is greater than the demand for it. This shifts the equilibrium point between the two forces and helps to create economic stability in a market.