Ofmatið á eftirspurninni eykur offramboðið.

Questions & Answers about Ofmatið á eftirspurninni eykur offramboðið.

How does the prefix of- change the meaning of the base nouns in this sentence?
The prefix of- implies an excess or "too much" of something, directly equivalent to "over-" in English. In this sentence, it attaches to mat (assessment/estimation) to create ofmat (overestimation), and to framboð (supply) to form offramboð (oversupply).
Why is eftirspurninni (the demand) in the dative case here?
It is dictated by the preposition á. When nouns related to evaluation, estimation, or measurement (like mat and its compound ofmat) take a preposition to indicate what is being evaluated, they almost always use á followed by the dative case.
What are the literal building blocks of the words for supply and demand used here?
They are highly literal compound words. Eftirspurn (demand) is built from eftir (after) + spurn (an inquiry or asking), literally "asking after" something. Framboð (supply) combines fram (forward) + boð (an offer), essentially meaning "what is offered forward."
The English translation uses the verb-like "Overestimating demand", so why does Icelandic use definite nouns (ofmatið and eftirspurninni)?
English frequently uses gerunds (verb forms ending in -ing) for these kinds of subjects. Icelandic instead uses a pure noun structure: literally "The overestimation on the demand". Furthermore, Icelandic often uses the definite article suffix (-ið, -inni) for abstract concepts or general economic forces where English drops it entirely.
What is the infinitive of the verb eykur and why does its vowel look so different?
The infinitive is auka (to increase). The shift from au to ey happens in the singular present tense (ég eyk, þú eykur, hann/hún/það eykur) due to I-umlaut, a common historical vowel shift you will see in many strong Icelandic verbs.

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