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Demand for a good or service well over supply. Excess demand leads to high prices for the good or service.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
excess demandsee EQUILIBRIUM MARKET PRICE.
Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson
shortagesa situation in which the quantity demanded (see DEMAND) of a product (OQ2 in Fig. 64) exceeds the quantity supplied (see SUPPLY) (OQ1) at the existing market price (OP). In competitive markets there will be an upward pressure on price, reflecting a shortage of the product, but where the price is controlled the excess could persist. See EQUILIBRIUM MARKET PRICE, Fig. 64 Excess demand. See entry.
Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005