Laws in Economy

Supply and Demand is an economic model of a price determination in a market. 
There are four basic laws of supply and demand:
If demand increases and supply remains unchanged, then it leads to higher equilibrium price and quantity.


The law of supply is used everywhere in the world. For example, if the income of the apples are huge, the producing supply of the apple will increase also. It gives benefit to the society in life cycle. 


However, if people suddenly stops buying apples, then the income will decrease and also the producing number of apples will also decrease. This is the law of Demand. It is a law that states that consumers buy more of a good when its price decreases and a less when its price increases ( also known as Ceteris Paribus).

Two more important theories are left, which are Veblen, andGIffen goods. Veblen goods are goods that are perceived to be exclusive as long as prices remain high or increase. For example, high-status items such as luxury cars, expensive shoes or pricey watches remain appealing to certain cosumers as long as prices remain high or increase.

Giffen goods is an extreme type of inferior good. An example of Giffen good can be bread being still the cheapest food which they can get and will take, they consume more, and not less or it.