Demand and price relationship is a fundamental concept in business that describes how the level of demand for a product or service can affect its market price. This interplay between demand and price forms a key element of any pricing strategy. When demand is high, prices tend to rise; when demand falls, prices usually come down accordingly. In order to maximize profits in the long run, businesses should strive to ensure an optimal balance between price and demand. This can be achieved through careful analysis of the market, keeping a close eye on competitors’ prices, and adapting to changing consumer needs.