Law of Economics are based on a set of generalizations assumed to govern economic activity. In Economics, there are two basic laws:
- Law of demand
- Law of supply
Law of Demand:
Law of demand is one of the basic laws of economic, according to which demand rises in response to a fall in prices while other factors remain constant, such as cionsumer preferences and level of income of consumers.
In other words, customers buy a high quantity of products at lower prices and vice versa.
Law of Supply:
According to this law, as the price a goods or services rises, producers are motivated to increase their supply in order to maximize there profits. Conversely, when the price decreases, producers have less incentive to supply the product, resulting in the decrease in the quantity supplied.
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