Economics 101: The Law of Supply and Demand

Will outsourcing the Washington State Department of Printing really reduce printing costs? Really?

Let’s think back to entry-level economic theory—Economics 101. Remember the Law of Supply and Demand? It’s a straightforward concept. According to the Web site Investopedia:

“Supply and demand is perhaps one of the most fundamental concepts of economics and it is the backbone of a market economy.” Demand refers to how much (quantity) of a product or service buyers want/need. Supply represents how much the market can offer. The correlation between price and how much of a good or service is supplied to the market is known as the supply relationship. Price, therefore, is a reflection of supply and demand.