Reed's Law states that the number of potential subgroups within a network grows exponentially based on the number of participants, according to the formula 2^n - n - 1, where n is the number of participants. The document also discusses Sarnoff's Law, which asserts that a network's value grows linearly with the number of viewers, and Metcalfe's Law, which claims a network's value grows with the square of the number of nodes. The document ponders how these laws impact the demand curve for networks and their long-term growth.