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Demand Greater Than Supply

oboloo Glossary

Demand Greater Than Supply

Demand greater than supply is a business term used to describe an imbalance in the marketplace: when there is an increased desire for a particular product or service, but not enough of that item is available to be purchased by buyers. This can result in higher prices, limited availability and restricted access to materials. Having a demand that exceeds supply can create significant opportunities for businesses, as they are able to capture higher margins on sales and provide their products and services to paying customers. However, it’s important to stay mindful of consumer sentiment; if demand outpaces supply for too long, buyers may begin to look elsewhere. Keeping up with consumer demand and responding accordingly is essential for success in today’s quickly evolving market.

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