Effect of an action returned (fed back) to oppose the very action that caused it. Balancing-feedback has a correcting or stabilizing effect on the system, and it reduces the difference (variance) between where the system is (the current status) and where it should be (the target value, or objective). For example, demand and supply in an economy work on each other to reach a stable (equilibrium) state through the feedback of information about price and availability. If supply is known to be greater than demand, price falls. Low price forces suppliers to pull out of the market, causing shortage that results in increase in price.