supply and demand(redirected from Theory of supply and demand)
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Supply and Demand
supply and demandsee 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.