I know the law of demand which states that
if price of a product increases then the demand will decrease
In this, I think we assume that price is a function of demand. But I feel otherwise i.e.
if demand increases then the price of the good will increases
If demand increases then the producers will capitalize on this fact and to increase their profits, will increase the price of the goods.
Where am I wrong?
Note: I have taken an introductory course on microeconomics as a minor and therefore know just the basic concepts only.