Best places to visit in peru for On the other hand, the law of supply states that as the price of a good or service increases (decreases), the quantity supplied of that good increases (decreases), holding all other factors constant. Therefore, at the market-clearing price, the quantity supplied equals the quantity demanded. That is, the market will clear. When the price of the particular good is above the equilibrium price, producers will supply more while consumers will demand less. This phenomenon creates a surplus. However, due to market forces, the surplus will not last indefinitely. An adjustment process will take place. Best places to visit in peru 2016.