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

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supply and demand

The company decided to accelerate work on a bigger vehicle, in part because of the mismatch between supply and demand for launch.

From The Wall Street Journal ● Sep. 22, 2026

While they might be energy hungry, there are ways in which electricity system operators can manage that hunger so that supply and demand are matched.

From BBC ● Sep. 15, 2026

"Population dynamics" and future housing supply and demand will also need to be taken into account, the draft said, adding any measure should be non-discriminatory, necessary and proportionate.

From Barron's ● Sep. 9, 2026

All hospitality packages include tickets to events, their prices varying by event, supply and demand.

From Los Angeles Times ● Aug. 20, 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