For the opposite, see excess demand.
In economics, excess supply (also called surplus) is when quantity supplied is more than quantity demanded, and the price is above the equilibrium level. Specifically, there is a overproduction of supply that producers wish to sell due to a shortage in demand for the product.
Other articles related to "excess supply, excess, supply":
... Business and economics portal Excess demand. ...
... In economics, overproduction', oversupply or excess of supply refers to excess of supply over demand of products being offered to the market ... The demand side equivalent is underconsumption some consider supply and demand two sides to the same coin – excess supply is only relative to a given demand, and insufficient demand is only relative to a given ... due to previous overinvestment – creation of excess productive capacity, which must then either lie idle (or under capacity), which is unprofitable, or produce an excess ...
... is quite possible for there to be a glut (excess supply, market surplus) for one product, and it co-exists with a shortage (excess demand) for others ... But what if the excess demand is for money, because people are hoarding it? This creates an excess supply for all products, a general glut ... institutions (markets), so that any increase in the holding of money increases the supply of loanable funds ...
Famous quotes containing the words supply and/or excess:
“There never has been a time in our history when work was so abundant or when wages were as high, whether measured by the currency in which they are paid or by their power to supply the necessaries and comforts of life.”
—Benjamin Harrison (18331901)
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