Meaning & use
excess supply
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Meaning
phraseuncountablebusinessfinance
(economics) A situation where the amount of a good supplied is greater than the amount demanded at the current price.
Grammar: Usually uncountable; do not add 'a' or a plural.
Patterns
- excess supply of something
- cause excess supply
- excess supply leads to something
The fall in demand caused an excess supply of oil.
Excess supply usually pushes prices down.
Farmers faced an excess supply of wheat after a good harvest.
Common combinations
- excess supply of goods
- There was an excess supply of goods after the holiday season.
- a surplus
- The market had a surplus of cars.
- excess demand
- Excess demand can lead to higher prices.
- supply and demand
- Prices are determined by supply and demand.
Synonyms and how they differ
- surplus
- A more general word for an amount that is more than needed; 'excess supply' is the specific economic term.
- oversupply
- Very close, but often used for a lasting situation; 'excess supply' is the standard term in economics for a temporary market condition.
Opposites
Word family
Commonly confused: excess supply or excess demand?
excess supply vs excess demand
'Excess demand' is the opposite: when people want more than is available. 'Excess supply' is when there is too much available.
Practice
What does 'excess supply' mean in economics?
Choose one answer.
'Excess supply' means the quantity supplied is greater than the quantity demanded. Option A describes excess demand, not excess supply.
Make it your own
Write a sentence using “excess supply”, then check it and compare it with the examples above.