The law of supply and demand is quite simple: Prices rise when demand outpaces supply, decline when there's an oversupply Decreasing supply could spur rise in home prices The law of supply and demand is quite simple: Prices rise when demand outpaces supply, decline when there's an oversupply Check out this story on lcsun-news.com: http://lcsun.co/2kw50LS The law of supply and demand is quite simple: Prices rise when demand outpaces supply, decline when there's an oversupply, and remain stable when the quantity of the commodity, product or service desired is equal to the quantity available.