What is the Practical application of law of demand and supply in economics?

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The law of demand denotes that a drop in the rate of a commodity

hikes the volume demanded. The price elasticity of demand measures

the volume demanded responds to a variation in price. Demand for a

commodity is said to be elastic if the volume demanded reacts

considerably to variations in price.

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Demand is said to be inelastic if the volume demanded reacts only

slightly to variations in the price. The price elasticity of demand

for any commodity measures how enthusiastic consumers are to shift

from the commodity as its price hikes. Therefore, the elasticity

reproduces the many economic, social and psychological forces that

shape consumer tastes. Depending on familiarity, nevertheless we

can denote common rules about what ascertains the price elasticity

of demand.