supply and demand

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.

Example Sentences

Those policies include providing extra financial support for people on benefits, as well as the cost of switching generators, such as windfarms, on and off - to maintain overall supply and demand.

From BBC

Most estimates turn to historical data to find some level when supply and demand weren’t completely out of whack.

From Los Angeles Times

An imbalance between supply and demand has prompted those who are able to afford it to secure unregulated supplies on the black market, the committee was told.

From BBC

Carter said the NFL franchise valuations published by Sportico and others aren’t entirely accurate because they don’t fully reflect the supply and demand for teams at any given time.

From Los Angeles Times

He argues that the proposed new public health ministry regulations will restrict supply and demand, and restore the industry to what it was always intended to be, focused solely on the medical use of marijuana.

From BBC