what is oversupply 
oversupply is an excessive amount of a product that is the result of when demand is lower than supply resulting in a surplus understanding oversupplysimply put an oversupply is when there is more product for sale than people are prepared to buy at the current price although the context can vary oversupply results from overproduction and leads to the accumulation of unsalable inventories price levels and oversupply are strongly correlated there are many reasons why oversupply may occur there can be an oversupply of a current product due to people waiting for an improved model in a series such as smartphones from a particular maker oversupply can also occur in situations where the price of the good or service is too high and people are simply not willing to buy it at that price an oversupply may also simply be a case of a producer completely misreading the market demand for a product surplus is a synonym for oversupply 