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

And he doesn’t expect supply and demand for HDDs to reach parity until 2029, which is 12 months beyond his original estimate.

From MarketWatch • Apr. 6, 2026

Morgan Stanley doesn’t see supply and demand reaching parity until 2029, a year later than it previously estimated.

From Barron's • Apr. 6, 2026

"I don't understand why we are in a situation where we're beholden to supply and demand when it comes to something as basic as healthcare and medicine," she said.

From BBC • Mar. 30, 2026

“We still are facing a decades-high gap between supply and demand right now,” said Lisa DeNight, head of North American industrial research at Newmark.

From The Wall Street Journal • Mar. 26, 2026

“That such small unbalances in the perfection of our system of supply and demand, as I have mentioned, may be the first step towards the final war.”

From "I, Robot" by Isaac Asimov