How does Moore's Law relate to the development and evolution of microchips? What are the implications of this law on microchip technology?

In this question how Moore's Law relates to the development and evolution of microchips needs to be explained along with the implications of Moore's law on microchip technology.

Moore's Law: Moore's Law is a prediction made by Gordon Moore, fellow founder of Intel, in 1965, which significantly affects the evolution and development of microchips. It says that the number of transistors on a microchip would double approximately like every two years where the cost per transistor would diminish.