Oversupply Meaning: Definition, Examples, and Translations
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oversupply
[ˌoʊvərsəˈplaɪ ]
Definition
economics
An excess of supply over demand in a market, leading to lower prices and surplus of goods or services.
Synonyms
Which Synonym Should You Choose?
| Word | Description / Examples |
|---|---|
| oversupply |
Refers to a situation where the supply of a product exceeds its demand, typically used in economic and business contexts.
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| surplus |
Generally denotes an amount that is more than what is needed, with a relatively neutral connotation, can be used in various contexts from economics to everyday life.
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| glut |
Implies an overabundance of something, often with a negative connotation, suggesting that the excess amount is problematic.
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| excess supply |
Describes an economic condition where the quantity supplied of a good is more than the quantity demanded, often used in formal economic analysis.
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Examples of usage
- There was an oversupply of oil in the market, causing prices to plummet.
- The oversupply of housing in the area led to a decrease in property prices.
Translations
To see the translation, please select a language from the options available.
Interesting Facts
Economics
- Oversupply can lead to lower prices for goods, as sellers try to sell more by making things cheaper.
- It often occurs in markets where production is high, but demand has decreased, leading to excess stock.
- In agriculture, oversupply can cause farmers to waste food if there are not enough buyers.
Market Trends
- The dot-com bubble of the late 1990s is an example where oversupply in technology stocks led to a market crash.
- In fashion, seasonal oversupply can lead to heavy discounts and reduced brand value.
- The real estate market has faced oversupply, leading to homes sitting unsold and decreased property values.
Environmental Impact
- Oversupply in production can lead to waste, as unsold goods often end up in landfills.
- Excessive production in industries like textiles contributes to overconsumption and environmental strain.
- Sustainable practices encourage managing supply to avoid oversupply and reduce ecological impact.
Psychology
- When consumers see too many choices (oversupply), it can lead to decision fatigue, making it harder to choose.
- Paradoxically, having too many options can lower satisfaction with the ultimate choice made.
- Oversupply can create a feeling of overwhelming abundance, potentially leading to anxiety in consumers.
Historical Context
- Throughout history, different civilizations have faced oversupply challenges during times of war or economic recession.
- The Great Depression saw massive agricultural oversupply, contributing to economic turmoil.
- During the post-World War II era, certain industries faced oversupply as production ramped up too quickly for consumer demand.
Origin of 'oversupply'
The word 'oversupply' originated in the mid-19th century as a combination of 'over-' (indicating excess) and 'supply'. It is commonly used in economics to describe a situation where the quantity of a good or service exceeds the demand for it, resulting in a surplus. The term has been widely adopted in business and economic contexts to discuss market dynamics and pricing strategies.
See also: supplied, supplier, suppliers, supplies, supplying, undersupply.