Existing research on supply and demand (S&D) in adult literacy education in the United States was reviewed to determine the types of data needed to model S&D more accurately. Recent state/national studies of literacy service providers/technology, data on the demand for literacy instruction, the recent National Adult Literacy Survey, and studies of participation were reviewed. It was discovered that few S&D studies in adult literacy have gone beyond enumerating service providers or examining barriers to further participation (demand). The S&D equations for literacy instruction in the United States were found to be complicated by several factors: changing demands for basic skills in the workplace, an increase in immigrants with limited command of English, changing federal welfare policies, and limited awareness on the part of persons with low reading/writing ability that their skills are insufficient for everyday needs. Types of data required for modeling S&D were identified. It was concluded that the S&D characteristics in U.S. literacy policy have not been well understood, S&D are often poorly equilibrated, and recent national studies can provide useful guidance toward providing a better S&D balance. (The bibliography contains 24 references. Appended is a table detailing funding of/participation in California's work force literacy programs.) (MN)