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Definition of

law of supply and demand

Economics

relation between availability of and desire for goods the economic principle relating the quantity of goods available for sale at a given price and the level of consumer need for those goods. The balance of supply and demand fluctuates as external economic factors such as the cost of materials and the level of competition in the marketplace influence the level of demand from consumers and the desire and ability of producers to supply the goods.

Definitions of ’law of supply and demand’ and meaning of ’law of supply and demand’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’law of supply and demand’ and other financial terms with our online QFINANCE Financial Dictionary.

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