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.

---

Example Sentences

See Examples For:

supply and demand

The global oil market is under stress from the Iran war, but by and large it does a good job of matching supply and demand.

From The Wall Street Journal ● Aug. 30, 2026

While that’s a small portion of the overall Treasury market, the supply and demand balance in longer-term bonds has been fragile, “so small moves can matter,” LeBas said.

From MarketWatch ● Aug. 19, 2026

At the heart of the wine industry’s crisis is a basic supply and demand problem: too many grapes and not enough buyers, industry experts told The Times this year.

From Los Angeles Times ● Aug. 14, 2026

If the world’s inventory buffers were depleted, $120 is a price that could trigger enough demand destruction to put global supply and demand back in balance, Merritt Point’s Baird said.

From MarketWatch ● Jul. 24, 2026

Dismantling East Computing had been a simple matter of operations, of supply and demand and expedience.

From "Hidden Figures" by Margot Lee Shetterly