Value depends upon the relation between demand and supply. As we have already seen, demand varies inversely with the price; that is, as the price increases the demand decreases. When the price is very high comparatively little of the article will be demanded. As the price falls, more of the good will be demanded until at a very low price a considerable quantity of the good will find buyers willing to pay the price. But we might know all about the demand for a good in a market and yet not know what the value would be likely to be. In order to make a correct forecast of the value it is necessary to know not only the conditions of demand but also the conditions of supply. The value of a commodity will be fixed at the point where the amount offered just equals the amount demanded.