The law of demand states that as prices increase, the quantity demanded decreases. The law of supply states that as prices rise, the amount supplied increases. Using these two laws help find the solution to the following problems:

• Describe how changes in prices result in a downward sloping demand.
• Describe how changes in prices result in an upward sloping supply.
• What will happen when consumer demand equals producer supply?

Be sure that you include in your report the idea of market equilibrium.