respond to this discussion Supply and Demand COLLAPSE The law of supply and demand is simple but complex at the same time. The simple part of it is, if there is demand for a product the free market will supply that product. When the market supplies more of the product than the demand, then the price will go down. When the market demands more of the product than is supplied, the price will go up. The complex part is knowing when you are over or under producing a product and adjusting accordingly