Supply and demand comprises the fundamental concept on which our global economy stands. Evidence of this comes in the form of every country's money supply policies. Supply and demand remains relevant to every business, from the corner barbershop to the multi-billion dollar petroleum conglomerate. Companies that supply goods and services provide one side of the equation and an individual or another company provide the other side—consumerism.
Supply and Demand
The principle of supply and demand states that when a particular good or service has limited supply and increased demand, the price of the good or service increases. Conversely, when a particular good or service has an abundant supply and little demand, the price of the good or service decreases.