The price elasticity of a product describes how sensitive suppliers and buyers are to changes in price. It doesn't change in relation to supply and demand, but it defines the slope of each curve.

Keep reading to learn more about the law of supply and demand and how it applies to everyday decisions.

On the supply and demand curve, quantity determines how much suppliers offer and how much consumers demand. Levels of supply and demand for varying prices can be plotted on a graph as curves.

Supply- and Demand-Driven PCE Inflation updates data on the contributions to personal consumption expenditures (PCE) inflation from supply-driven versus demand-driven components. This tool is intended ...

Simulations using a Phillips curve-type relationship provide insights into the importance of demand versus supply for inflation over different periods. The decade of low inflation after the Great ...