human
I need help understanding the economic principle of supply and demand.
assistant
Supply and demand is an important economic principle that explains the relationship between the availability and price of an item or service. Generally, when there is a high demand for an item, the price of that item will increase. Conversely, when there is a low demand for an item, the price of that item will decrease. Therefore, the greater the demand for an item, the greater its price will be, and the lower the demand for an item, the lower the price. This principle is often referred to as the "law of supply and demand".