Excess supply
What Excess supply means in Economics B A-Level, as defined for Pearson Edexcel.
Definitions of Excess supply
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Reference: Pearson Edexcel
A situation where producers supply more than consumers demand, which pushes the price down as sellers reduce prices to clear stock.
Occurs when a market price is above equilibrium, meaning quantity supplied exceeds quantity demanded.
Topics that use Excess supply
- Price determination (Pearson Edexcel A-Level)
Related terms
- Ceteris paribus
- Excess demand
- Incentives and rationing
- Market dynamics
- Market equilibrium
- Market-clearing price
- Non-price determinants
- Price mechanism
Using Excess supply in the exam
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