High Supply And Low Demand is a business phenomenon that has major implications for prices, productivity and profits. It describes the situation when supply surpasses demand, meaning there is an abundance of available goods and services but lack buyers to purchase them. This scenario can lead to lower prices, reduced production levels and diminished profits. As a result, businesses must be aware of their own levels of supply and demand – and adjust accordingly. By considering their resources, monitoring their markets and understanding economic cycles, they protect themselves against the pitfalls of high supply and low demand.