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Markets are made up of sellers and buyers. Sellers have a supply of goods, and buyers have a supply of money. If the price is right, a seller and a buyer agree to make a trade. The amount of buyer interest that exists at a specific price level is called the demand.
The opposite of cost-push inflation, where increased production costs drive the price of a particular good or service up, is demand-pull inflation. Demand-pull inflation includes times when an increase in demand is experienced and production cannot be increased to meet the changing need. In these cases, product costs rise as a reflection of the imbalance in the supply and demand model.