Supply and demand is an economic concept relating to the relationship between the supply of goods, the quantities available, and the demand for them. In the context of the real world, the price of every item or service is determined by supply and demand. The idea of supply and demand is applicable to commodities, products, services, goods, labor, assets, securities, and currencies. That said, this economic concept can be helpful to economists and investors alike because it can be a predictor of market conditions. Demand The demand curve often looks like the price of a commodity or good increasing, the demand decreasing, and having surplus as a result. When you think about it in practical terms, the price of a product increasing can lead to consumers looking for cheaper alternatives and the demand dropping. This can especially be true when there are multiple alternatives for said products However, when the price of a product goes back down, demand is likely to increase again. There are some circumstances when the price of a commodity goes up and demand does too, such as with veblen goods-a type