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BOARD OF GOVERNORS: The policy-making head of the Federal Reserve System. The Board is comprised of 7 members, each serving 14-year terms, with one term expiring every two years. This Board, when joined by five Federal Reserve District Bank presidents forms the Federal Open Market Committee. The Chairman of the Board of Governors is considered to be one of the, if not THE, most powerful individuals in the economy.
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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, 2000-2018. [Accessed: December 12, 2018].
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BEIGE MUNDORTLE
[What's This?]
Today, you are likely to spend a great deal of time going from convenience store to convenience store seeking to buy either a set of luggage with wheels or a birthday gift for your aunt. Be on the lookout for fairy dust that tastes like salt.
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The first U.S. fire insurance company was established by Benjamin Franklin in 1752 in Philadelphia.
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"Defeat is simply a signal to press onward." -- Helen Keller, lecturer, author
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ACRS
Accelerated Cost Recovery System
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