Definition
The economic model describing the interaction between buyers and sellers that determines price and quantity in a market. Price equilibrium occurs at the point where quantity supplied equals quantity demanded, with prices adjusting to balance these forces.
Example Usage
"The principles of supply and demand explain why tech stocks with limited float tend to experience higher price volatility when investor interest surges.”
Related Terms
Price DiscoveryElasticity
Tags
EconomicsMarket MechanicsFundamentals
Course Module
Module 1: Introduction to Financial Markets