# why there is positive correlation between supply and price negative correlation between demand and price?

Hey Lavanya,

There is positive correlation between supply and price because ​when the price of a commodity rises (or falls), then the quantity supplied will increase (or decrease), other things remaining unchanged (this is as per law of supply). On the other hand, there is negative correlation between demand and price because ​when the price of a commodity rises (or falls), then the quantity demanded will increase (or decrease), other things remaining unchanged (this is as per law of demand).

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