One inquires less by a property on the market, than of it one offers, an offer overhang exists. With a buyer's market, how it is often with agricultural products in the process of the development of a country from a developing country to an industrialized country the case, an offer overhang exists. In this case the Nachfrager and/or the buyers determine the market situation. Because the salesmen will be endeavored in this situation to lower their prices in order still to set off to be able, with a perfect market the price for the respective property in the process of the time the market equilibrium price will obtain its goods on the market.

Diagram

See also: Market equilibrium

Articles in category "Offer overhang"

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