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NOMINAL GDP: The total market value, measured in current prices, of all goods and services produced within the political boundaries of an economy during a given period of time, usually one year. The key is that nominal gross domestic product is measured in current, or actual prices; the prices buyers actually pay for goods and services purchased. Nominal gross domestic product is also termed current gross domestic product.
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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, 2000-2026. [Accessed: March 5, 2026].
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BEIGE MUNDORTLE
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Today, you are likely to spend a great deal of time browsing about a thrift store wanting to buy either a replacement remote control for your stereo system or a computer that can play video games and burn DVDs. Be on the lookout for broken fingernail clippers.
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The first paper currency used in North America was pasteboard playing cards "temporarily" authorized as money by the colonial governor of French Canada, awaiting "real money" from France.
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"I much prefer the sharpest criticism of a single intelligent man to the thoughtless approval of the masses." -- Johannes Kepler, German Astronomer
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ARP
Average Revenue Product
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