overproduction
Sign in to saveAlso known as oversupply, glut
In economics, overproduction, oversupply, excess of supply, or glut refers to excess of supply over demand of products being offered to the market. This leads to lower prices and/or unsold goods along with the possibility of unemployment.
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Encyclopedic overview
7 sectionsContents
- Explanation
- Inevitability
- Say's law
- Environmental impact
- See also
- References
- External links
In economics, overproduction, oversupply, excess of supply, or glut refers to excess of supply over demand of products being offered to the market. This leads to lower prices and/or unsold goods along with the possibility of unemployment.
The demand side equivalent is underconsumption; some consider supply and demand two sides to the same coin – excess supply is only relative to a given demand, and insufficient demand is only relative to a given supply – and thus consider overproduction and underconsumption equivalent.
Excerpted from Wikipedia’s “overproduction” article, available under the CC BY-SA 4.0 licence.