Law Of Supply And Demand
A theory explaining the interaction between the supply of a resource and the demand for that resource. The law of supply and demand defines the effect that the availability of a particular product and the desire (or demand) for that product has on price. Generally, if there is a low supply and a high demand, the price will be high. In contrast, the greater the supply and the lower the demand, the lower the price will be.
The law of supply and demand is not an actual law but it is well confirmed and understood realization that if you have a lot of one item, the price for that item should go down. At the same time you need to understand the interaction; even if you have a high supply, if the demand is also high, the price could also be high. In the world of stock investing, the law of supply and demand can contribute to explaining a stocks price at any given time. It is the base to any economic understanding.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
law of supply and demand — a statement in economics: the competitive price that clears the market for a commodity is determined through the interaction of offers and demands * * * law of supply and demand noun The economic theory that the price of an item at a particular… … Useful english dictionary
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law of supply and demand — theory that there should be a parity between the request and supply of products in the marketplace … English contemporary dictionary
law of supply and demand — /ˌlɔ:r əv səˌplaɪ ən dɪ mɑ:nd/ noun a general rule that the amount of a product which is available is related to the needs of potential customers … Marketing dictionary in english
law of supply and demand — /ˌlɔ:r əv səˌplaɪ ən dɪ mɑ:nd/ noun a general rule that the amount of a product which is available is related to the needs of potential customers … Dictionary of banking and finance
supply and demand — UK US noun [uncountable] economics the relationship between how much of a particular product is available and how much of it people want, and especially the way that this affects the level of prices Thesaurus: economy and economicshyponym * * *… … Useful english dictionary
supply and demand — Econ the quantity of goods available for sale at a given price, and the level of consumer need for those goods at a given price. The balance of supply and demand fluctuates as external economic factors such as the cost of materials and the level… … The ultimate business dictionary
supply and demand — sup.ply and de mand n [U] the relationship between the amount of goods for sale and the amount of goods that people want to buy, especially the way it influences prices ▪ the law of supply and demand … Dictionary of contemporary English
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