<!-- generated: provider=openrouter model=arcee-ai/trinity-large-preview:free date=2026-02-19 source=book-1-chapter-07 -->

# Overstocked Market Conditions

# Understocked Market Conditions ---

# Understocked Market Conditions

## Definition

Market situations where the quantity of a commodity brought to market exceeds (overstocked) or falls short of (understocked) the effectual demand, causing prices to fall below or rise above natural prices respectively.

## Source Chapter

Book I, Chapter 7

## Context

Described through the dynamics of how excess supply forces prices down while insufficient supply drives prices up through competition among buyers.

## Economic Domain

Exchange

---
