Supply and Demand Laws dictate the price mechanism of markets. They state that when demand for goods or services increases, so does the price, and vice versa. This is because when more people are competing for goods, suppliers can charge higher prices for those goods. On the flip side, when fewer people are buying a certain product, suppliers must lower prices to incentivize sales. The concept of supply and demand is simple but powerful – it enables market economies to coordinate the production and sale of goods in an efficient way.