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

A collective exit can destabilize the system and create a scramble to balance power supply and demand.

From The Wall Street Journal • Jul. 2, 2026

Grocery stores and farms follow the same basic principles of supply and demand as any other business.

From Salon • Jul. 2, 2026

“The U.K. equity story reflects a structurally impaired investment case, driven by both supply and demand shortfalls rather than Brexit alone,” the strategists noted.

From MarketWatch • Jun. 24, 2026

Over the past two decades, global cobalt supply vulnerabilities have become more volatile while generally rising, driven by growing concentration within the supply chain and imbalances between supply and demand.

From Science Daily • Jun. 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