The article explains how supply and demand work. Supply is the amount of a product available for sale, while demand is how much consumers want to buy. Price affects both supply and demand at the same time. When the price goes up, more will be supplied but less will be demanded. When the price goes down, less will be supplied but more will be demanded. Changing the price can help balance supply and demand. The rate at which quantity bought or offered changes with price is called elasticity. Elasticity of demand shows how demand changes with price, while elasticity of supply shows how supply changes with price.