supply and demand

Cultural  

1. In classical economic theory, the relation between these two factors determines the price of a commodity. This relationship is thought to be the driving force in a free market. As demand for an item increases, prices rise. When manufacturers respond to the price increase by producing a larger supply of that item, this increases competition and drives the price down. Modern economic theory proposes that many other factors affect price, including government regulations, monopolies, and modern techniques of marketing and advertising.

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Example Sentences

This may push the price above what fundamental supply and demand predict, resulting in a risk premium.

From The Wall Street Journal • Jun. 7, 2026

Director of system operations, Craig Dyke, said engineers would be working "around the clock" to balance supply and demand.

From BBC • Jun. 6, 2026

Another element keeping housing prices high is the classic law of supply and demand.

From Los Angeles Times • May 29, 2026

"This rule works against basic supply and demand," said Stephen Yurek, head of the group.

From Barron's • May 21, 2026

In the new version of the law of supply and demand, jobs are so cheap—as measured by the pay—that a worker is encouraged to take on as many of them as she possibly can.

From "Nickel and Dimed: On (Not) Getting By in America" by Barbara Ehrenreich