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VARIABLE COST: In general, cost that changes with changes in the quantity of output produced. More specifically, variable cost is combined with the adjectives "total" and "average" to indicate the overall level of variable cost or the per unit variable cost. Variable cost depends on the amount of produced. If there is no production, then there is no variable cost.
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                           EXCESS SUPPLY: A disequilibrium condition in a competitive market in which the quantity supplied is greater than the quantity demanded. Excess supply is another way to say surplus. It also goes by the common term of buyers' market. Excess supply is one of two disequilibrium states of the market. The other is excess demand (or shortage). Excess supply emerges in a market when the quantity supplied by the sellers exceeds the quantity demanded by the buyers... at a given market price. Sellers are seeking to sell more of the good than buyers are willing to buy, hence there is an "extra" or "excess" amount of supply.| Excess Supply |  |
Excess supply 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 supply for 8-track tapes is indicated as the difference between the quantity supplied and the quantity demanded at a specific market price. In particular, at a 70-cent price, the quantity supplied is 600 tapes and the quantity demanded is 200 tapes. Sellers are willing and able to sell 400 tapes more than buyers are willing and able to buy. Hence this market has an excess supply of 400 tapes. The result of this excess supply is a decrease in the market price. Because sellers are unable to sell as much of the good as they want, they are inclined to bid down the price. Of course, as the price falls, the quantity demanded increases and the quantity supplied decreases, both acting to reduce the amount of the excess supply. Ultimately the entire excess supply is eliminated and equilibrium is restored.
Recommended Citation:EXCESS SUPPLY, AmosWEB Encyclonomic WEB*pedia, http://www.AmosWEB.com, AmosWEB LLC, 2000-2025. [Accessed: July 2, 2025].
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YELLOW CHIPPEROON
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Today, you are likely to spend a great deal of time calling an endless list of 800 numbers hoping to buy either a bottle of blackcherry flavored spring water or a travel case for you toothbrush. Be on the lookout for celebrities who speak directly to you through your television.
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There were no banks in colonial America before the U.S. Revolutionary War. Anyone seeking a loan did so from another individual.
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"always remember an epitaph which is in the cemetery at Tombstone, Arizona. It says: „Here lies Jack Williams. He done his damnedest.¾ I think that is the greatest epitaph a man can have ‚ When he gives everything that is in him to do the job he has before him. That is all you can ask of him and that is what I have tried to do. " -- Harry Truman, 33rd US president
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JPE
Journal of Political Economy
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