supply and demand

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Supply and Demand

The availability of goods and services in the market and the desire of consumers to buy them. Supply and demand is a major factor (some economists believe the only factor) in determining the price of a good or service. See also: Law of Supply and Demand.

supply and demand

see SUPPLY CURVE, DEMAND CURVE.

supply and demand

An economic principle that says the price is determined by the point where supply equals demand.As supplies increase and purchasers have more choices of housing or commercial spaces,sellers and landlords will begin to compete on the basis of price and prices will come down.As demand increases and there are insufficient properties in the market to meet the demand, purchasers will begin bidding up the prices or sellers will raise prices until they meet some price resistance.

References in periodicals archive ?
For example, although he claims that "modern economics has no theory of price," he concedes that its theory of competition (the "market structure" approach to pricing) "is the concept at the root of modern economics' theory of price" and that the law of supply and demand is "the closest thing modern economics has to a general theory of price" (pp.
Employed optometrists allege that so-called "master shopticians" are very keen for the economic law of supply and demand to operate in their financial favour.
The money market is a market where the price of money is determined by the law of supply and demand, but in Lebanon we have a centralized decision with regard to fixing exchange rates," he said.
The law of supply and demand is perfectly capable of taking care of such matters.
But there is still a higher overriding economic law of supply and demand that fuels these outlawed transactions.
Jurys Hotel maintains charging EUR450 for rooms which normally cost EUR99 is down to the old law of supply and demand.
According to the BCCI, salaries should be determined only through the law of supply and demand and should not be subjected to decisions by institutions.
He's protected by a moderate talent worth millions in a world which worships the law of supply and demand.
Furthermore, the lack of development has supported higher prices for commercial real estate but housing prices have not followed the same law of supply and demand.
In terms of the law of supply and demand, there is only so much land.
As retail outlets become more desirable off the back of the Bullring, and soon Martineau Galleries, the law of supply and demand means that the cost of acquiring sites is bound to rise.
This is an understandable reaction, but it ignores what is actually causing the problem: the law of supply and demand.