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

It’s a fair point: Ticket prices are a function of supply and demand, and demand for Dodgers tickets is driven by Shohei Ohtani and the Dodgers’ dynasty.

From Los Angeles Times

Now, they’re lined up to sell, so there’s a “temporary supply and demand imbalance,” Kamfar says.

From The Wall Street Journal

But for Micron, the laws of supply and demand are helping it run up a record high score.

From The Wall Street Journal

PJM representatives said that there may not be such a large shortfall in 2027 because supply and demand could change before then.

From Barron's

Miran warned that responding to those figures risks tightening policy based on statistical noise rather than imbalances between supply and demand.

From Barron's