economics

supply and demand

The economic model describing the relationship between the availability of a product and the desire for it, which determines price.

Example

"When demand for housing exceeded supply, prices rose sharply in the city."

💡 Memory Tip

SUP-ply what's available, DEM-and what's wanted. When demand > supply, prices rise.

Etymology

Supply (what's available) + demand (what's wanted) — the two fundamental forces of any market.

Common Misspellings

supply and demendsuply and demandsupply and demmand

Related Terms

microeconomics

See Also

pricemarketequilibrium

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