What is the law of supply and demand?
ASU economist explains how supply and demand shape the stock market.
In this story published March 11, 2025, on The Motley Fool:
The stock market is a prime example of how demand and supply accurately reflect real-world transactions. When you buy or sell stocks through your favorite app, you can easily see the current price of a stock. With this information, you can decide whether to buy or sell. Transactions are executed and settled in seconds: It is like magic! This seamless and effortless process is possible because the stock price represents the 'equilibrium price,' which almost instantly balances buy and sell orders.
– Domenico Ferraro, associate professor of economics
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