Share This Article:

Economic Definition of excess demand. Defined.

Offline Version: PDF

Term excess demand Definition: A disequilibrium condition in a competitive market in which the quantity demanded is greater than the quantity supplied, hence there's "extra" demand. Pointy-headed economists generally use the more technical term shortage rather than excess demand. The reason, of course, is that shortage has two syllables and excess demand has four. The time saved in pronouncing two syllables rather than four is a definite efficiency plus for the entire economy.

 

« excess capacity | excess reserves »

Permalink: http://glossary.econguru.com/economic-term/excess+demand

Alphabetical Reference to Over 2,000 Economic Terms