---
entity_slug: market_demand_regulation
entity_type: Relation
vsm_system: S2
type_rationale: Market Demand Regulation represents a structural dependency and causal
  mechanism that links market demand to production scale and specialization, functioning
  as a connector between different economic entities rather than being an entity itself.
vsm_rationale: This regulation operates as a coordination mechanism that prevents
  oscillations between overproduction and underproduction by using demand signals
  to automatically adjust the scale of economic activity and maintain equilibrium
  between town and country economies.
classified_at: '2026-02-23T11:12:44.012698'
---

# Classification: Market Demand Regulation

## Entity Type

Relation

## VSM System

S2

## Type Rationale

Market Demand Regulation represents a structural dependency and causal mechanism that links market demand to production scale and specialization, functioning as a connector between different economic entities rather than being an entity itself.

## VSM Rationale

This regulation operates as a coordination mechanism that prevents oscillations between overproduction and underproduction by using demand signals to automatically adjust the scale of economic activity and maintain equilibrium between town and country economies.
