Respond to this discussion The law of demand essentially states that as the price of a product increases, the amount of people wanting to buy the product or demand for this product will then fall. While on the other hand if the price of the product decreases, naturally the demand will rise. The law of supply explains that as price for a product goes up this will give the producers an incentive to make more making supply go up. So then if the price for somethinng falls it will give producers an incentive to produce less of this product and maybe even produce something else making supply also fall. When the supply and demand for a product come to an equal point benefitting the sellers and buyers this is called a point of equillibrium. There are outside forces though that are able to fluctuate this point of equillibrium which means prices will naturally fluctuate while still technically staying in the equillibrium