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

"I don't understand why we are in a situation where we're beholden to supply and demand when it comes to something as basic as healthcare and medicine," she said.

From BBC • Mar. 30, 2026

He expects the market to remain “highly reactive to headlines,” with geopolitical developments likely to overshadow underlying supply and demand fundamentals.

From Barron's • Mar. 24, 2026

Susquehanna analyst Mehdi Hosseini said supply and demand may start to even out in mid-2027 as more memory clean-room facilities come online.

From Barron's • Mar. 9, 2026

In July 2024, about 70 data centers withdrew from the grid when another high-voltage line failed, requiring a similar scramble to keep power supply and demand in line.

From The Wall Street Journal • Mar. 1, 2026

“That such small unbalances in the perfection of our system of supply and demand, as I have mentioned, may be the first step towards the final war.”

From "I, Robot" by Isaac Asimov