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the law of demandthe law of demand states that, if all other factors remain equal, the higher the price of a good, the less people will demand that good. in other words, the higher the price, the lower the quantity demanded. the amount of a good that buyers purchase at a higher price is less because as the price of a good goes up, so does the opportunity cost of buying a product that will force them to go to the consumption of something else they value more.the law of supplylike the law of demand, the law of supply demonstrates the quantities that will be sold at a certain price. but unlike the law of demand, the supply relationship shows an upward slope. this means that the higher the price, the higher the quantity supplied. producers supply more at a higher price because selling a higher quantity at a higher price increases revenue.
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