Transaction happens when supply and demand meet. Both sides (a seller and a buyer) meet their needs: a seller gets money for its products (now he can manufacture next products) and a buyer gets product he needed.
If there is not enough supply for the demand, the demand won´t be able to buy the supply
Then demand and supply are equal.
Make or stock more but sell higher until supply meets demand, usually selling at a fair market price will cause higher volumes of sales because more can afford it. Conversely, too much supply will cause you to sell for less until demand meets supply !
According to the law of supply and demand when supply increases, prices will decrease.
When demand decreases, supply increases.
When demand is greater than supply a supply shortage or scarcity arises and prices increase.
If demand decreases and supply is constant, the price will increase.
They rise. Supply & demand.
jack
If the price decreases then the economic law of demand & supply comes in operation with increase in demand and decrease in supply, as the producer will not supply at the price unsuitable to them in the market .
The price declines until demand increases.
When there is more supply than demand, there is commonly a drop in price of the product in an effort to increase the demand and achieve the equilibrium between supply and demand once again. Supply and demand are like a see-saw. As supply goes down, demand goes up; as demand goes up, supply goes down.