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What is supply and demand?

What is supply and demand? Here are some definitions.

Noun
  1. (economics) A capitalistic model of price determination in a market.
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He who makes the most money, makes the rules, and the only unchangeable laws concern supply and demand.
The segmented market hypothesis explains the yield curve's shape in terms of relative supply and demand for securities at different maturities.
A floating exchange rate is one that is allowed to find its own level according to the forces of supply and demand.
The economic ratio, or terms of trade, becomes a diplomatic move unrelated to the laws of supply and demand.
Basic supply and demand analysis tells us that in any of these situations, the price of sugar will rise.
No one is equating babies with commodities, but the principles of supply and demand apply.

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