{"id":4579,"date":"2021-08-11T14:28:08","date_gmt":"2021-08-11T19:28:08","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/smallbusiness\/business-operations\/law-of-supply-and-demand-definition.html"},"modified":"2024-06-06T03:23:46","modified_gmt":"2024-06-06T08:23:46","slug":"law-of-supply-and-demand-definition","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/smallbusiness\/business-operations\/law-of-supply-and-demand-definition.html","title":{"rendered":"What Is the Law of Supply and Demand?"},"content":{"rendered":"\n
\n \n
\n

What Is the Law of Supply and Demand?<\/h1>\n
\n
\n By Kimberly Lekman, Esq.<\/a> | Legally reviewed by J.P. Finet, J.D.<\/a>\n | Last updated\n
\n

Editorial Note: We earn a commission from affiliate partner links on FindLaw. Commissions do not affect the editorial integrity of our legal content.<\/p>\n\n <\/div>\n \n

\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
\n

This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

\n \n <\/i>\n Fact-Checked\n <\/summary>\n\n
\n

The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n

The law of supply and demand is a foundational idea in economic theory that explains how the market price of a good or service is determined in a competitive market. When the price of a good or service increases, supply goes up, but demand goes down. So, the equilibrium market price will be the price where supply and demand meet.<\/p>\r\n

Key Takeaways<\/h2>\r\n