Supply and demand work as fundamental concepts in economics to determine the price and quantity of goods in a market. The interaction between the quantity of a commodity that producers want to sell and the quantity consumers wish to buy establishes the market price, referred to as the equilibrium price, where both quantities match [2][6]. 

When prices rise, the quantity supplied typically increases while demand decreases, and vice versa for falling prices [5][1]. Changes in non-price factors, such as consumer preferences or production costs, can shift the supply or demand curves, leading to new equilibrium prices and quantities in the market [4][6].

Law of Supply and Demand in Economics: How It Works

How does supply and demand work?

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