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

The balance between supply and demand will be in focus this spring season.

From Barron's

“It’s basic supply and demand,” Troutman said.

From The Wall Street Journal

That combination suggests supply and demand for workers are roughly aligned, but “delicate,” and vulnerable to negative shocks.

From Barron's

For now, there seems to be a tentative balance in labor supply and demand, but it is a delicate balance, Barr said.

From The Wall Street Journal

The gap between supply and demand for those long-dated bonds is helping drive the corporate bond market’s historically tight spreads, Sorid said.

From The Wall Street Journal