Tuesday, 19 April 2011

Glut


It means excessive or over-supply of goods for sale in the market. The prices in market are determined mainly by the principle of demand and supply. If the supply of goods is more than their demand, prices start decreasing. Contrary to it, if demand is more than the supply of goods, prices start increasing. When goods are in excess and are not sold at reasonable prices, we say there is Glut in the market.

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