What is the concept of supply and demand in economics?

Supply and demand is a fundamental concept in economics that explains how the price and quantity of goods and services are determined in a market economy. The law of demand states that as the price of a good or service increases, the quantity demanded by consumers decreases, and vice versa. On the other hand, the law of supply states that as the price increases, the quantity supplied by producers increases, and vice versa. The interaction between supply and demand determines the equilibrium price, where the amount of a good supplied equals the amount demanded, resulting in market stability.