Increase in Supply and Demand is a business concept that refers to the relationship between consumer demand for a product or service and its available supply. As consumer demand increases, suppliers can raise prices as people are willing to pay more for the same goods or services. Conversely, when new supply is added, pricing may be lowered or remain steady depending on how much the existing demand varies. In either case, there is a shift in the Supply and Demand dynamic. Additionally, if overall consumer demand decreases over time, suppliers may reduce the quantity of items produced in order to balance out their inventory expenses. By understanding these relationships, businesses can make better decisions about pricing, production volumes and other important parts of their operations.