Final answer:
The law of supply and demand is a key concept in economics that determines market prices and stability.
Explanation:
The law of supply and demand, as described by Adam Smith, is a fundamental concept in economics.
It states that the price and quantity of goods in a market are determined by the balance between what suppliers are willing to provide and what consumers are willing to buy.
This equilibrium point, where supply equals demand, is crucial in establishing market prices and stability.
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