law of supply and demand


This says, most simply, that prices depend on supply and demand. More precisely, price is determined so as to equate quantities supplied and demanded. Even more precisely, a price tends to rise when demand exceeds supply, and vice versa.

Use this term in a sentence

Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
law of supply lawful interest