Kinda, not quite. Supply and demand naturally cover each other in societies at certain levels. Price is primarily determined by the cumulative labor that goes into it, including the previous labor for machinery, raw materials, etc. If the composition of said commodity raised in constant capital (machinery, raw materials, etc) while lowering by ratio in variable capital (labor), price generally lowers. The supply can increase or decrease, what impacted the value was the change in total labor time.
In other words, supply and demand are best seen as averages that push and pull price above and below value. Productivity changes that value, which sets new supply and demand.
Kinda, not quite. Supply and demand naturally cover each other in societies at certain levels. Price is primarily determined by the cumulative labor that goes into it, including the previous labor for machinery, raw materials, etc. If the composition of said commodity raised in constant capital (machinery, raw materials, etc) while lowering by ratio in variable capital (labor), price generally lowers. The supply can increase or decrease, what impacted the value was the change in total labor time.
In other words, supply and demand are best seen as averages that push and pull price above and below value. Productivity changes that value, which sets new supply and demand.