Supply and demand is the economic concept that describes the relationship between the availability of a product or service (supply) and the desire for it (demand), which together determine its price in the market.
Related terms
Market equilibrium: The point where supply and demand meet, resulting in an agreed-upon price for a product or service.
Elasticity: A measure of how sensitive the quantity demanded or supplied is to changes in price.
Surplus: When supply exceeds demand, leading to excess inventory or unsold goods.