Undersupply Meaning: Definition, Examples, and Translations

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undersupply

[ˌʌndər.səˈplaɪ ]

Definition

^{Context #1 | Noun}

economics

A situation where the quantity of a good or service supplied is less than the quantity demanded at a given price. Undersupply can lead to shortages and price increases.

Synonyms

deficiency, scarcity, shortage.

Which Synonym Should You Choose?

Word	Description / Examples
undersupply	This term is commonly used in economic or logistical contexts when there is not enough of a product to meet demand. The undersupply of microchips has affected the manufacturing of cars globally
shortage	This word is often used to describe a situation where something essential or necessary is in short supply, and it can affect everyday life. There is a shortage of medical staff in rural areas, which affects the quality of healthcare
scarcity	Used to refer to a situation where resources are limited or rare, often in broader economic, environmental, or social discussions. Water scarcity is becoming a major concern in many parts of the world due to climate change
deficiency	This word is often used in medical or nutritional contexts to describe a lack of essential nutrients, vitamins, or minerals. Iron deficiency can lead to serious health issues, including anemia

Examples of usage

There was an undersupply of face masks during the pandemic, leading to price gouging.
The undersupply of affordable housing in urban areas has become a major social issue.

Translations

To see the translation, please select a language from the options available.

Interesting Facts

Economic Theory

The concept of undersupply often relates to markets where demand exceeds supply, causing prices to rise.
In economics, an undersupply can lead to scarcity, where the available quantity is insufficient to meet consumer needs.

Historical Context

Throughout history, undersupply has occurred during wars when resources become limited.
The Great Depression showcased undersupply in the agricultural sector, leading to widespread food shortages.

Healthcare

During the COVID-19 pandemic, there was a global undersupply of medical supplies, highlighting vulnerabilities in health systems.
Vaccination campaigns often face undersupply issues, especially in developing countries where distribution can be challenging.

Environmental Issues

Water scarcity is a critical example of undersupply, affecting millions around the world due to pollution and climate change.
Forests often face an undersupply of resources necessary for wildlife, affecting biodiversity and ecosystem health.

Technology

In tech markets, undersupply issues can arise during product launches, leading to long wait times for consumers eager to purchase.
The semiconductor shortage during the pandemic illustrated how undersupply can disrupt entire industries, from automotive to electronics.

Origin of 'undersupply'

The term 'undersupply' originated in the field of economics, specifically in the context of supply and demand dynamics. It is used to describe a situation where the available quantity of a good or service is insufficient to meet the demand for it. The concept of undersupply plays a crucial role in understanding market forces and pricing mechanisms. Over time, the term has been widely adopted in various industries and disciplines to highlight the imbalance between supply and demand.