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What is the law of supply and demand?
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The law of supply and demand states that the price of a good or service is determined by the amount of supply and the magnitude of demand for that good or service. When the demand for a product increases, prices typically increase too. Similarly, when the supply of a certain product is limited, the price usually goes up. When supply is abundant and demand is low, prices usually go down.  This law is one of the most fundamental aspects of economics.