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

On oil prices, Trump can accomplish only so much by crushing speculators; eventually, supply and demand take charge.

From The Wall Street Journal • Jun. 7, 2026

Another element keeping housing prices high is the classic law of supply and demand.

From Los Angeles Times • May 29, 2026

"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

Dismantling East Computing had been a simple matter of operations, of supply and demand and expedience.

From "Hidden Figures" by Margot Lee Shetterly