law of supply and demand

British

noun

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

"Collins English Dictionary — Complete & Unabridged" 2012 Digital Edition © William Collins Sons & Co. Ltd. 1979, 1986 © HarperCollins Publishers 1998, 2000, 2003, 2005, 2006, 2007, 2009, 2012

Example Sentences

Examples are provided to illustrate real-world usage of words in context. Any opinions expressed do not reflect the views of Dictionary.com.

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

Why not use the law of supply and demand to help solve our problem?

From Washington Post • Oct. 23, 2022

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

Definitions and idiom definitions from Dictionary.com Unabridged, based on the Random House Unabridged Dictionary, © Random House, Inc. 2023