Describe how the law of supply and demand works. use at least one example in your answer.

The law of supply and demand: If the supply of something is low but the demand is high, then the price will tend to increase. If the supply is high but the demand is low, the price will tend to decrease. An example of this would be fuel prices, when the demand for fuel is high (shortages, busy travel weekends etc) the price will typically increase and reflect the law of supply and demand.

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Parrain Parrain · Answer 2 · 2022-03-22T11:45:51+01:00

The law of supply and demand shows how the prices and quantities of goods and services in a country are decided.

What is the law of supply and demand?

It posits that when prices are high, suppliers will supply more goods and services to an economy in order to make more money.

When prices are high however, people will demand less goods and services because they can't afford as much.

Together the law says that when the supply of goods in the economy is low compared to demand, prices will rise which will then lead to less people buying, and more supply.

Find out more on the law of supply and demand at https://brainly.com/question/4803223.