Supply and demand determine equilibrium prices; high demand or low supply raises prices. Investing during low demand and high supply periods can lead to cost savings. Supply-demand principles ...

The market theory of supply and demand was popularized by Adam Smith in 1776. Consumer demand for a good decreases as its price rises. As prices rise, producers manufacture more to gain more profits.

Aggregate supply and demand are represented separately by their curves. Aggregate supply is a response to increasing prices that drive firms to utilize more inputs to produce more output.

Supply is generally considered to slope upward: as the price rises, suppliers are willing to produce more. Demand is generally considered to slope downward: at higher prices, consumers buy less. The ...