Supply and demand is a basic economic concept that explains how prices for goods and services are determined. It also explains why certain products are in high demand, and others are ignored or dismissed. The basic principle behind supply and demand is that when the demand for a product is high and the supply is low, the price goes up. Conversely, when the demand is low and the supply is high, the price goes down. This concept applies to virtually every market and industry, including goods and services of all kinds. It’s the primary driving force behind how goods and services are produced and priced in today’s economy.