Definition, Meaning & Synonyms

excess-demand

Noun

/ˈɛksɛs dɪˈmænd/

Definition

Excess-demand refers to a situation in which the quantity of a good or service demanded exceeds the quantity supplied at a given price.

Examples

During the holiday season, excess-demand for toys can lead to empty shelves in stores.
The excess-demand for housing in the city has driven prices up significantly.
When more people want a new smartphone than there are units available, the excess-demand causes frustration among buyers.

Meaning

This concept is often associated with shortages in the market, where consumers want to purchase more of a product than is available, leading to upward pressure on prices.