supply and demand

Definitions (2)

1. The basis for an economic theory stating that when supply exceeds demand, the market value (price) of a product will drop and when demand exceeds supply, its value will rise. In the financial markets, the relationship between supply and demand is said to be reflected in selling price of a security, derivative, or debt instrument.
2. Real Estate: The appraisal principle that follows the interrelationship of the supply of and demand for real estate. As appraising is based on economic concepts, this principle recognizes that real property is subject to the influences of the marketplace just as is any other commodity.

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I was so glad to finally be learning about supply and demand because it was a term that I had wanted to learn about for a long time.

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The idea of supply and demand has been around for a few hundred years but it seems like many people still do not understand how it works in the economy.

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Stores like Gamestop use supply and demand when an item in stock is no longer in demand so the price decreases such as older games for early generation consoles which causes the game to be sold at a discounted price.

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