|
|
UNEMPLOYMENT RATE, MEASUREMENT PROBLEMS: The official unemployment rate, which measures the proportion of the civilian labor force 16 years or older that is not engaged productive activities but is actively seeking employment, is estimated and reported monthly by the U.S. Department of Labor's Bureau of Labor Statistics (BLS). The imperfections of official unemployment rate fall into two categories. One that suggests the "true" unemployment of labor resources is likely greater than the official unemployment rate and the other that suggests the "true" unemployment of labor resources is likely less than the official unemployment rate. Two items that show up in the understated category are discouraged workers and part-time workers. Two items that shows up in the overstated category are unreported legal employment and unreported illegal employment.
Visit the GLOSS*arama
|
|
|
|
                           EXCESS DEMAND: A disequilibrium condition in a competitive market in which the quantity demanded is greater than the quantity supplied. Excess demand is another way to say shortage. It also goes by the common term of sellers' market. Excess demand is one of two disequilibrium states of the market. The other is excess supply (or surplus). Excess demand emerges in a market when the quantity demanded by the buyers exceeds the quantity supplied by the sellers... at a given market price. Buyers are seeking to buy more of the good than sellers are willing to sell, hence there is an "extra" or "excess" amount of demand.| Excess Demand |  |
Excess demand is illustrated using the market for 8-track tapes displayed in this exhibit. This graph was generated with data from the 88th Annual Trackmania 8-Track Tape Collectors Convention at the Shady Valley Exposition Center.The excess demand for 8-track tapes is indicated as the difference between the quantity demanded and the quantity supplied at a specific market price. In particular, at a 30-cent price, the quantity demanded is 600 tapes and the quantity supplied is 200 tapes. Buyers are willing and able to purchase 400 tapes more than sellers are willing and able to sell. Hence this market has an excess demand of 400 tapes. The result of this excess demand is an increase in the market price. Because buyers are unable to buy as much of the good as they want, they are inclined to bid up the price. Of course, as the price rises, the quantity supplied increases and the quantity demanded decreases, both acting to reduce the amount of the excess demand. Ultimately the entire excess demand is eliminated and equilibrium is restored.
Recommended Citation:EXCESS DEMAND, AmosWEB Encyclonomic WEB*pedia, http://www.AmosWEB.com, AmosWEB LLC, 2000-2020. [Accessed: February 22, 2020].
Check Out These Related Terms... | | | | | | | |
Or For A Little Background... | | | | | | | | | |
And For Further Study... | | | | | | | |
Search Again?
Back to the WEB*pedia
|
|
|
PURPLE SMARPHIN
[What's This?]
Today, you are likely to spend a great deal of time lost in your local discount super center trying to buy either a wall poster commemorating the first day of spring or a lazy Susan for you dining room table. Be on the lookout for empty parking spaces that appear to be near the entrance to a store.
Your Complete Scope
This isn't me! What am I?
|
|
|
The average length of a "business lunch" is about 36 minutes.
|
|
|
"Be willing to have it so. Acceptance of what has happened is the first step to overcoming the consequences of any misfortune." -- William James, Psychologist
|
|
ATM
Automated Teller Machine
|
|
|
Tell us what you think about AmosWEB. Like what you see? Have suggestions for improvements? Let us know. Click the User Feedback link.
User Feedback
|
|
