Document Summary
These are examples of supply and demand in action! Supply and demand are the two main factors that determine the price and availability of goods and services in a market. Supply refers to the amount of a product that producers are willing to sell at a given price, while demand refers to the amount of a product that consumers are willing to buy at a given price. The relationship between supply and demand is what determines the price and quantity of a product that is sold in a market. When there is more demand for a product than there is supply, the price will go up. When there is more supply than there is demand, the price will go down. For example, let"s say that there is a lot of demand for a popular toy during the holiday season. The stores might increase the price of the toy because they know that people will pay more for it.