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*A fall in price tends to increase the quantity demanded by the public, and a rise in price tends to decrease the quantity demanded. '''LOWER PRICE MEANS HIGHER QUANTITY DEMANDED''' (and higher price means a lower quantity demanded). This is known as the '''Law of Demand''': the quantity demanded changes inversely with price.
*A fall in price tends to increase the quantity demanded by the public, and a rise in price tends to decrease the quantity demanded. '''LOWER PRICE MEANS HIGHER QUANTITY DEMANDED''' (and higher price means a lower quantity demanded). This is known as the '''Law of Demand''': the quantity demanded changes inversely with price.
*When the quantity demanded exceeds the quantity supplied at a given price, the price tends to rise as sellers take advantage of the high quantity demanded by increasing price. Similarly, when the quantity supplied exceeds the quantity demanded, the price tends to decrease as sellers try to sell their unsold goods.
*When the quantity demanded exceeds the quantity supplied at a given price, the price tends to rise as sellers take advantage of the high quantity demanded. Similarly, when the quantity supplied exceeds the quantity demanded, the price tends to decrease as sellers try to sell their unsold goods.
*Price tends to move towards the amount at which the quantity in demand is equal to the quantity in supply: '''EQUILIBRIUM IS WHERE QUANTITY SUPPLIED EQUALS QUANTITY DEMANDED'''.
*Price tends to move towards the amount at which the quantity in demand is equal to the quantity in supply: '''EQUILIBRIUM IS WHERE QUANTITY SUPPLIED EQUALS QUANTITY DEMANDED'''.