In any modern Economy, there will be want for a product and then there will be the product itself. I might have the want (demand) for a pie, but if there are only a few places to get pies (lack of supply) then I would pay more for a pie than I would otherwise if there were more pies (more supply). Getting the Pi day reference out of the way, Supply and Demand is crucial to any economy. Without either, it is hard to have an economy since either nobody is providing or nobody is buying causing stagnation in the economy.
Supply is interesting as it is the most judged by physical limitations. We only have so many gallons of oil and therefore supply is limited for it. But, we may have a nearly infinite demand of oil so long as there are vehicles or goods that require oil to run. That is why people are slowly integrating sustainable energy into the energy market as you could have a theoretical infinite supply of solar energy or wind energy.
Demand is what really drives the need for a supply of an item. A lack of demand will lead to a lack of supply. If nobody wants the previous generation of phones, then nobody will buy them and production of them will grind to a halt. So demand is necessary for a product to be successful.
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