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

Supply and demand are getting better, Guangfa Futures analysts write in a note, adding that the market expects stronger demand to raise inventories.

From The Wall Street Journal • Dec. 2, 2025

Supply and demand is the key, says Eddie, who is managing director at The 10 Group - a marketing agency which works with the likes of Visa, Red Bull and Costa Coffee.

From BBC • Jan. 27, 2023

For the sellers, the answer is obvious: Supply and demand.

From New York Times • Feb. 3, 2022

Supply and demand are so great that some people are collecting mammoth tusks at near-industrial scale.

From Seattle Times • Oct. 4, 2019

Supply and demand in wages.—Wages in general are subject as truly to the law of supply and demand as are the products of labor.

From Rural Health and Welfare by Fairchild, George Thompson