On the supply side, the relationship is between price and quantity. High prices encourage production; low prices discourage production. (The effect is just the opposite on the demand side: high prices discourage consumption, while low prices encourage it.) High prices allow more resources to be used in production. High prices may mean that production will be more profitable (Supply, par. 22).
This focus on consumers and producers, the goods and services that consumers desire and producers produce, and the interaction of supply and demand in individual markets is the basis of the field of microeconomics. This study of markets and supply and demand "is filled with concepts that are recognizable in the real world [with] applications in trade, industrial organization and market structure, labor economics, public finance, and welfare economics," according to G. Chris Rodrigo, a visiting scholar in the International Monetary Fund's Research Department (Rodrigo, 2012, par. 11).
What about distribution? In economics, the term ‘distribution' does not refer to the transportation or marketing of goods. Instead, it refers to the way output (products), income, or wealth are distributed (i.e., how they are apportioned) among individuals as well as the factors of production: land, labor, and capital. In a classic market economy, prices determine distribution. The buyer who is the most willing to pay market prices will be the buyer who goes home with the product. Ultimately, consumers themselves decide upon the value of a product and the price they are willing to pay for it, so price is a determining factor in how products and goods are distributed.
For a definition of the factors of production in a market economy, click the following link.
https://www.investopedia.com/terms/f/factors-production.asp.
The lesson at the link below explores various methods of distribution for goods and services, outlining their advantages and disadvantages, using the example of sought-after tickets to a show.
http://www.econoclass.com/allocation.html
Additional resources for further exploration
The activity at the link below, based on agricultural products, demonstrates how price is related to supply and demand and how outside factors—the "what if" factors—influence the supply and demand nexus.
http://avbarn.museum.state.il.us/sites/default/files/supply-demand-Agclsrm.pdf
