Conversely, price controls meant to keep the cost of goods higher than markets would allow create an excess of supply over demand.
These are set to ensure a broad balance between overall supply and demand over the medium term (the next two years or so) thus keeping the economy on a path consistent with price stability.
Speculation over the supply and demand dynamics of commodities this year has led to increased inflows in the space.
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Mr el-Badri accepted that members had disagreed over data on supply and demand.
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And he adds that reduced demand in Japan would only make the over-supply of modules worse.
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Plus, the big imbalance of supply and demand for solar panels over the past two years prompted factory closures and bankruptcies, and many more manufacturers are sure to disappear over the next three years.
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The fact is that human desires are unlimited, and (assuming that the Federal Reserve provides stable money, which it has not over the past 40 years) supply creates demand.
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Mr Gahbauer added that as a result, fewer second-hand properties had come onto the market "than is normally the case in recessions", which moved the balance of supply and demand "more in favour of sellers over the course of 2009".
In other words, higher employment of over-55s reflects not just relatively stronger demand, but more supply.
But when combined with other factors affecting demand and supply, the concept of energy independence comes into view over the next couple of decades.
Suffice it to say, oil companies are in no danger of being over taxed and if they would invest in more refining capacity for heavy and sour crudes, the supply and demand for petroleum would stablize, at least over the next period.
But the real doubt over this sort of enterprise is not the supply, but the demand.
It is always important to remember that over the short-term stock prices are determined by supply and demand and not fundamentals and valuation.
Over-building and spiking foreclosures have already produced an over-supply of large suburban homes for which there is little demand or ability to purchase.
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We expect the new supply required to meet global uranium demand to be about 270 million pounds over the next 10 years (our previous estimate was 320 million pounds).
But as demand has grown over the past few years, particularly from booming places like China, supply has not kept pace, so Saudi Arabia's buffer has gradually worn through.
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Although we have delivered more than 500, 000 iPads during its first week, demand is far higher than we predicted and will likely continue to exceed our supply over the next several weeks as more people see and touch an iPad(TM).
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But the fundamental driver straining supply will be the burgeoning demand of a global population tilting towards nine billion over the next three decades.
With additional capacity kicking in over the next 4-5 years, we may eventually see supply outpacing demand, which would result in oversupply and a consequent decline in spot market prices.
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The video games retail giant expressed optimism over the next wave of consoles, predicting that demand for the Playstation 4 would outpace supply, even as the company prepares for a tough time waiting for those new consoles.
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For Tony Volpon, a managing director in charge of emerging markets fixed income in the Americas over at Nomura Securities in New York, there are distinct factors changing the demand and supply of labor in the direction of tighter conditions.
Over time, historically, commodities are most impacted by the basic forces of supply and demand.
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Eventually demand catches back up with supply and profits are reestablished, only to lead to another bout of over expansion.
Proven reserves are sufficient to supply more than 40 years of demand, but the reality is likely to be well over 100 years.
In fact, a battery system can perform more than a dozen tasks, from sending short bursts of power to stabilize the electric grid to releasing a steady supply of electricity over a longer period of time when there is a lot of demand for power.
Any effort to modify global prices over a sustained period will most likely fail without substantial changes in the mechanics of supply and demand.
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It is nonetheless to be expected that there may be a supply-demand gap for indium, with a substantial escalation in its price, at least over the immediate term which is likely to impact on the inauguration of the thin-film CIGS cell industry.
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Surveyors believe uncertainty over the reform of the Common Agricultural Policy and the future of farming has also reduced supply and demand for land among the farming community.
Because demand is high and supply is low, home values mostly have nowhere to go but up as more buyers compete over a shrinking pool of available homes.
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