More Demand Than Supply

More Demand Than Supply

More Demand Than Supply

oboloo’s Glossary

More Demand Than Supply is an economic principle that states when the number of buyers in the market for a good or service is higher than the amount of suppliers providing the same item, prices tend to increase. This is due to the increased competition between buyers, leading them to bid up prices. The reverse of this principle is known as ‘More Supply Than Demand’. Here, the number of sellers outstrips the demand for their product, meaning prices will tend to drop accordingly. Understanding these principles and how they interact can be invaluable to businesses wanting to maximize profits and stay competitive.