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

Demographic changes play a major part in the imbalance between supply and demand.

From BBC ● Oct. 8, 2026

Some dealers think these new advertising rules will help them keep prices more consistent and predictable, but supply and demand will be the ultimate arbiter.

From The Wall Street Journal ● Sep. 21, 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

He was the prototypical businessman who saw the world through the prism of supply and demand.

From "Long Walk to Freedom" by Nelson Mandela

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