When given any product, the higher the price that is offered to buy it, the higher the quantity supplied will become.This means that the producers will make more, because the more they sell the more revenues they will have (and in the end, the more profits). That is the Law of Supply.
The Law of Demand states that the higher the price of a product, the lower quantity of that product will be demanded (sold). If it costs more, buyers will be less likely to buy, and will wait for a lower price or look for a substitute.
The Law of Supply and Demand is the relationship between those two previous statements. And it shows that at any given price, there are always a set number of items of that product that will be sold. The lower the price, the more demand. The higher the price, the lower the demand for it. Where the supply meets the demand at the price agreed by both the buyer and the seller, you will find the Equilibrium Point:
