If the demand for a good or supply increases, what happens to the price?
If the demand for a good increases, the price usually increases as well. This is because an increase in demand typically leads to a higher willingness to pay among consumers, creating upward pressure on prices.
On the other hand, if the supply of a good increases, the price generally decreases. When the supply increases, there is more product available in the market, which can result in a surplus if the demand does not increase at the same rate. In order to sell the excess supply, sellers may lower the price to attract buyers.