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

That's caused an imbalance between supply and demand which means everyone has to pay more.

From BBC

He said prices "often fluctuate dramatically" based on "demand and supply" - and demand is significantly up right now.

From BBC

Belton said supply and demand imbalance in the memory market will likely continue in the foreseeable future, but he sees improvements there starting in the back half of next year.

From MarketWatch

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