For those less familiar with the theory – or if swotting in school is nothing but a distant memory – let’s use ice cream as a refresher (pun definitely intended)… Demand is the measure of how much a certain item is wanted. The demand for ice cream is typically weather-dependent. So, in the winter demand for ice cream goes down. Supply, on the other hand, is the measure of how available a certain item is. The supply of ice cream is fully-dependent on demand. So, in the winter demand for ice cream goes down, and therefore the supply goes up. The next piece in the supply and demand puzzle is price. Get the full story at SiteMinder