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Laws of Supply & Demand

Social Studies, Grade 6


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Study Guide Laws of Supply & Demand Social Studies, Grade 6

LAWS OF SUPPLY AND DEMAND What are the Laws of Supply and Demand? The term supply refers to the amount of goods that are available for sale. The term demand refers to how many people want the good or service that is for sale. The price of a good has an effect on how many people want to buy it. Many markets operate through supply and demand. Goods are made and sold according to the demand by the people. If a consumer wants more of one good or service, the manufacturers will make more, which in turns makes more money for the manufacturers. Both supply and demand depend on each other. This means that the manufacturer needs the consumer to stay in business. If no one wants the product, the business will fail! © Copyright NewPath Learning. All Rights Reserved. Permission is granted for the purchaser to print copies for non-commercial educational purposes only. Visit us at
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