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Subject Area: Economics
Topic: General Treatises on Economics

EXCESS OF THE DEMAND ABOVE THE SUPPLY. - Thomas Robert Malthus, Definitions in Political Economy [1827]

Edition used:

Definitions in Political Economy (London: John Murray, 1827).

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EXCESS OF THE DEMAND ABOVE THE SUPPLY.

53. The demand for a commodity is said to be in excess above the supply, when, either from the diminution of the supply, or the increase of the effectual demand, the quantity in the market is not sufficient to supply all the effectual demanders. In this case the intensity of the demand increases, and the commodity rises, in proportion to the competition of the demanders, and the sacrifice they are able and willing to make in order to satisfy their wants.