The (Response area) describes the relationship between prices and demand. According to this law, higher prices encourage buyers to look for a substitute. A substitute is a roughly equivalent good or service. Finding substitutes drops demand for the original good or service, thus lowering prices over time. The (Response area) tells the relationship between price and quantity supplied. A rise in prices encourages producers to supply more of a good or service in the hopes of making more money.
The (Response area) in the first paragraph describes the Law of Demand, which states that there is an inverse relationship between prices and demand. As prices increase, the demand for a good or service decreases because buyers tend to seek out cheaper substitutes.
The (Response area) in the second paragraph refers to the Law of Supply. According to this law, there is a direct relationship between price and quantity supplied. When prices rise, producers are motivated to supply more of the good or service in order to maximize their profits.
Both of these laws, the Law of Demand and the Law of Supply, are fundamental principles in economics and help to explain the dynamics of price and quantity in a market economy.