Excess Demand
A situation in which demand exceeds supply.
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Excess demand
Definition: Consumers want to buy more than producers are prepared to sell.
Related glossary term: ...
Excess demand - A situation in which, at the given price, quantity demanded exceeds quantity supplied. Also called a shortage.
Excess reserves - Reserves held by a commercial bank in excess of the legally required minimum.
EXCESS DEMAND: A disequilibrium condition in a competitive market in which the quantity demanded is greater than the quantity supplied, hence there's "extra" demand.
Excess demand
Demand minus supply. Thus a country's demand for imports of a homogeneous good is its excess demand for that good.
Excess profit ...
Demand-pull inflation A theory of inflation or price increases resulting from so-called excess demand. Related: Cost-push inflation. Demand shock An event that affects the demand for goods and services in an economy.
Among the causes that determine the phenomenon of inflation are the increasing supply of currency by the monetary authorities, the increased demand for goods and services compared to a stable supply (excess demand), ...
With shortages in the controlled sector, this excess demand spills over onto the noncontrolled sector (typically, new upper-bracket rental units or condominiums).
Definition: An asset bubble is formed when the prices of assets are over-inflated due to excess demand. It usually occurs when investors all flock to a particular asset class, such as real estate or commodities such as oil.
A restriction in the supply of a loan so that excess demand for credit exists at the market price. In perfect market economics, supply and demand schedules intersect at a price that clears the market.
An economics law that suggests that the existence of excess supply in one market must be matched by excess demand in another market so that it balances out.
General equilibrium [r]: A hypothetical state of a set of inter-related markets such that there is no excess supply nor excess demand in any market (see Equilibrium and disequilibrium). [e] ...
A theory of inflation or price increases resulting from so-called excess demand. Related: Cost-push inflation.
Demand shock
An event that affects the demand for goods and services in an economy.
Denomination ...
The Sonnenschein-Mantel-Debreu results show that, essentially, any restrictions on the shape of excess demand functions are essentially arbitrary. Some think this implies that the Arrow-Debreu model lacks empirical content.
cycle of rising prices and wages a situation in which, repeatedly, in inflationary conditions, excess demand causes producers to raise prices and employees to demand wage rises to sustain their living standards.
Short Squeeze - A situation in which a lack of supply and an excess demand for a traded stock forces the price upward.
clears: A verb. A market clears if the vector of prices for goods is such that the excess demand at those prices is zero. That is, the quantity demanded of every good at those prices is met.
Contexts: general equilibrium; modelling ...
Inflation: a sustained increase in a country's general level of prices that devalues its currency, often caused by excess demand in the economy.
Definition: Price increases driven by a shortage of goods and services as compared to demand. Definition: [crh] A theory of inflation or price increases resulting from so-called excess demand. Related: Cost-push inflation.
The excess demand for risky stocks at the beginning of the year bids the prices of these securities up. As the year draws to a close, the supply of relatively higher-risk stocks grows and the prices decline. [1] ...
Since there is more supply of a security or product than there is current demand, the prices tend to fall allowing buyers to set both the price and terms of the sale. It contrasts with a seller's market, characterized by excess demand, high prices, ...
 See also: Values, Equilibrium, Banks, Expense, Shock
  
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