supply and demand

Meanings

1. 1phraseuncountablebusinessfinance

   The economic idea that how much of a product is available and how much people want it together set its price.

   Grammar: Used as a single idea, so it takes a singular verb: 'Supply and demand decides prices.'

   Patterns

   • the law of supply and demand
   • supply and demand for something
   • supply and demand in a market

   In a free market, supply and demand set the price of coffee.

   When supply and demand are out of balance, prices swing wildly.

   Teachers often explain supply and demand using the example of umbrellas in the rain.

2. 2phraseuncountablefigurative

   The balance between what is available and what people want in any situation.

   Grammar: Used figuratively for non-economic situations, usually after 'the'.

   Patterns

   • the supply and demand of something
   • supply and demand for something

   With so many graduates and so few jobs, the supply and demand clearly favor employers.

   There is an endless supply and demand for cheap housing in big cities.

Common combinations

the law of supply and demand

The law of supply and demand explains why prices rise when goods are scarce.

supply and demand for something

Supply and demand for electric cars has grown quickly.

supply and demand curve

The class drew a supply and demand curve on the board.

balance supply and demand

The government tried to balance supply and demand for skilled workers.

supply and demand forces

Supply and demand forces pushed rents up again.

Synonyms and how they differ

market forces

A broader term for the pressures that move prices; 'supply and demand' names the two specific pressures.

Word family

supply noun

The amount of something available.

demand noun

The amount of something people want to buy.

Commonly confused: supply and demand or demand and supply?

Practice

Make it your own

Write a sentence using “supply and demand”, then check it and compare it with the examples above.

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