law of supply and demand

British  

noun

1. the theory that prices are determined by the interaction of supply and demand: an increase in supply will lower prices if not accompanied by increased demand, and an increase in demand will raise prices unless accompanied by increased supply

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Example Sentences

The law of supply and demand is simple in theory, but less so in practice.

From Barron's • May 14, 2026

Knowledge of current events, geography, and simple concepts like the law of supply and demand have been crowded out by willed ignorance and motivated reasoning.

From Salon • Apr. 19, 2026

It’s about the old law of supply and demand.

From Los Angeles Times • Oct. 12, 2024

"If the world supply is lower because Spain is producing less and the demand remains the same, the price goes up - it's the law of supply and demand."

From BBC • Dec. 5, 2023

When he encountered a wave of enemy resistance to this attack, he stuck to his position without regard for his safety or reputation and gallantly invoked the law of supply and demand.

From "Catch-22" by Joseph Heller