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

At the heart of the wine industry’s crisis is a basic supply and demand problem: too many grapes and not enough buyers, industry experts told The Times this year.

From Los Angeles Times ● Aug. 14, 2026

Drought is a lack of precipitation, whereas water scarcity is about a mismatch between water supply and demand - so it is not just about the weather.

From BBC ● Jul. 15, 2026

The stock’s relative outperformance this year highlights an “inverse relationship between the supply and demand side of the AI trade,” according to Reynolds.

From MarketWatch ● Jul. 7, 2026

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

“Why, the law of supply and demand regulates the price of houses.”

From "Native Son" by Richard Wright