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

"This rule works against basic supply and demand," said Stephen Yurek, head of the group.

From Barron's • May 21, 2026

It's all about "supply and demand", he said.

From BBC • May 4, 2026

It’s a stance economists generally agree with, pointing to a mismatch between supply and demand as a main driver of the housing crisis.

From Los Angeles Times • May 1, 2026

Diminishing OPEC’s market influence over prices would prevent the group of oil producers from achieving their goal to stabilize the oil market by keeping balance between supply and demand, said Raymond James’s Molchanov.

From MarketWatch • Apr. 28, 2026

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