underforespørsel

Underforespørsel is a Danish term that translates to "under-demand" or "insufficient demand" in English. It describes a situation in economics and business where the quantity of a good or service that consumers are willing and able to purchase at a given price is less than the quantity that producers are willing and able to supply at that price. This imbalance leads to a surplus of unsold goods or underutilized services.

The causes of underforespørsel can be varied. They may include a general decline in consumer purchasing power due to economic recession, a shift in consumer preferences away from a particular product, increased competition offering superior alternatives, or ineffective marketing and sales strategies. In some cases, it can also be a consequence of overproduction or an inaccurate assessment of market needs by businesses.

When underforespørsel persists, it can have significant consequences. Businesses may experience declining revenues, increased inventory holding costs, and pressure to reduce prices. This can lead to reduced production, layoffs, and potentially business closures. In a broader economic context, widespread underforespørsel can contribute to economic stagnation and unemployment.

Addressing underforespørsel typically involves strategies to stimulate demand. This can include lowering prices, implementing promotional campaigns, improving product quality or features, or developing new markets. For policymakers, measures to boost consumer confidence and income, such as fiscal stimulus or monetary easing, might be considered to combat broader issues of underforespørsel in the economy.