How does the law of supply and demand operate?
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the law of supply and demand operate is effective and essesive devestic
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The law of supply and demand operates according to the price point set by a business on its products or services.
For example, a company may pay $500 to build a computer and then charge $1000 to sell it, but if they find that a huge number of people want their computer they can raise the price even higher. If the computer is in high demand, people will pay more for it. By contrast, if they find that they build too many computers, then they will have high supply and will have to lower their prices to encourage customers to purchase it.
Some aspects of supply and demand are set by market forces (especially the prices of commodities), but in other cases businesses are free to see what prices they can set on their goods to maximize profit
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