supply and demand

Price-setting duo

Supply and demand is the economic principle that prices rise when goods are scarce relative to desire for them, and fall when goods are plentiful.

Supply is how much is available; demand is how much people want it.

The phrase often appears as shorthand for market forces generally: It's just supply and demand—there aren't enough houses for all the buyers.

Opposites
economic coordination mechanism

supply and demandcentral planning

Government directs all production

command economy · planned economy · state control · economic planning · rationing

economic ideology

supply and demandcommunism

Collective ownership system

socialism · Marxist economics · Marxism-Leninism · Stalinism · Maoism

price determination

supply and demandprice controls

Mandated limits on charges

price fixing · fixed prices · price ceilings · price floors

Family

supply, demand, supplies, demanded, supplied, supplier, demands, oversupply, suppliers

Familiarity
Top 50,000
Profile
Known to kids · Used worldwide · Timeless · Abstract · Everyday, not technical · Rated G