Which term describes the state of a network when the demand on the network resources exceeds the available capacity?

Answer: Congestion

Explanation:Congestion in the network is the situation when as link or node of network carries excess data and loads itself which results in the degradation of service quality. The common congestion in network are packet loss, delay in queue etc.

This situation usually occur when the demand of resources exceed the actual capacity like videos, text content, audio etc on the same network link.