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Supply Greater Than Demand

oboloo Glossary

Supply Greater Than Demand

Supply Greater Than Demand is an economic notion that occurs when there is a surplus of goods or services available for sale in the market, with no buyers willing to purchase them. This situation can occur due to various external factors such as an economic downturn, rising costs or competition from producers with lower costs. When this happens, prices start to decrease and businesses become less profitable or struggle to break even. To counteract this situation, businesses must focus on understanding their target market better, reducing production costs or innovating new products that can appeal to buyers.

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