excess demand
B2-C1 (Academic/Business English)Primarily formal/academic, business, journalism (economic reporting). Rare in casual conversation unless discussing specific shortages or economics.
Definition
Meaning
A situation in economics where the quantity of a good or service demanded at a particular price exceeds the quantity supplied at that price.
In broader usage, any situation where demand persistently outruns available supply, whether of physical goods, services, or even abstract resources like attention or administrative capacity. In engineering/systems contexts, refers to load exceeding design or safe capacity.
Linguistics
Semantic Notes
Most often a countable noun phrase. Describes a state or condition, not an action. Implies a systemic or market imbalance, not just individual want.
Dialectal Variation
British vs American Usage
Differences
Usage is identical in concept and largely identical in phrasing. 'Excess demand' is the standard term in both varieties for the economic concept. American business journalism might slightly more frequently use synonyms like 'demand outstripping supply' in non-technical reporting.
Connotations
Neutral/technical in both. Carries no inherent positive or negative judgement in economics, though its real-world consequences (shortages, price rises) are often framed negatively.
Frequency
Slightly higher frequency in UK economic reporting, where it is a firmly established term. In the US, 'shortage' or 'supply shortage' is often used in general news, with 'excess demand' reserved for more analytical pieces.
Vocabulary
Collocations
Grammar
Valency Patterns
There is excess demand for [NOUN].[MARKET/SECTOR] is experiencing excess demand.Excess demand has led to [CONSEQUENCE].Excess demand persists.Vocabulary
Synonyms
Strong
Neutral
Weak
Vocabulary
Antonyms
Phrases
Idioms & Phrases
- “Demand is outstripping supply.”
- “Chasing too few goods.”
Usage
Context Usage
Business
Analysing market imbalances, pricing strategies, and inventory issues. E.g., 'The marketing campaign was too successful, creating excess demand we couldn't fulfill.'
Academic
Core concept in introductory microeconomics to explain price mechanisms and disequilibrium. E.g., 'A price ceiling below the equilibrium price creates excess demand.'
Everyday
Used to explain shortages or queues. E.g., 'There's excess demand for tickets, so they sold out instantly.'
Technical
In engineering, can refer to a system (e.g., electrical grid, server) operating beyond its rated capacity.
Examples
By Part of Speech
verb
British English
- The new product is expected to excess demand our current production capacity.
- (Note: Very rare and non-standard as a verb. Not recommended.)
American English
- (Not used as a verb in standard English.)
adverb
British English
- (Not used as an adverb.)
American English
- (Not used as an adverb.)
adjective
British English
- The excess-demand situation led to a sharp price increase.
- They faced an excess-demand problem in the housing market.
American English
- The excess-demand pressure forced the company to raise prices.
- An excess-demand scenario is likely if the economy overheats.
Examples
By CEFR Level
- There is no excess demand for umbrellas in the desert.
- The shop had excess demand for the new toy.
- Excess demand for the concert tickets caused the website to crash.
- If there is excess demand, prices usually go up.
- The government's price controls on fuel created significant excess demand, resulting in long queues at petrol stations.
- Persistent excess demand in the rental market is pushing up costs for tenants.
- The central bank's analysis attributed the inflationary spike to excess demand pressures across multiple sectors of the economy.
- The planner's failure to anticipate population growth led to a chronic state of excess demand for local school places.
Learning
Memory Aids
Mnemonic
Think of a shop with empty shelves because customers (demand) took everything (excess). EXCESS DEMAND = Everyone EXiting a store Carrying Everything, Saying 'Sold out! DEMANDed more!'
Conceptual Metaphor
ECONOMY IS A PHYSICAL SYSTEM (with pressure, balance, flow). Excess demand is 'pressure' building up in the system, often leading to a 'release' via higher prices or rationing.
Watch out
Common Pitfalls
Translation Traps (for Russian speakers)
- Avoid direct calque from Russian 'избыточный спрос' in casual contexts; it sounds very technical. In general news, 'shortage' or 'high demand' is more natural. Confusing 'excess' (more than needed) with 'excessive' (unreasonable, often negative).
Common Mistakes
- Using as a verb (*'We excess demand for X').
- Confusing with 'excessive demand' (which implies the demand itself is unreasonable, not that it exceeds supply).
- Using in non-countable contexts where 'a shortage' would be simpler.
Practice
Quiz
In which scenario is the term 'excess demand' most accurately used?
FAQ
Frequently Asked Questions
Not exactly. 'High demand' simply indicates strong desire or requirement. 'Excess demand' is a technical term specifying that this high demand *exceeds the available supply* at a given point, creating an imbalance.
The direct economic opposite is 'excess supply' or a 'glut', where the quantity supplied exceeds the quantity demanded at the prevailing price.
It can be a sign of a popular product, but sustained excess demand is typically problematic. It leads to missed sales opportunities, customer frustration, and can invite competition. Businesses usually aim to match supply with demand.
In a free market, the primary mechanism is a price increase, which reduces the quantity demanded and increases the quantity supplied until equilibrium is restored. Other methods include rationing, waiting lists, or increasing production capacity.