Deficit and surplus in a competitive market. Surplus goods. Ways to sell surplus. Perspective solutions in the management of the company's inventory

According to statistics, the shortage of goods is one of the most acute problems of both the seller and the buyer and is often estimated at about 8% of the total turnover. According to another, no less sad statistics, in large stores the surplus of goods (often called "illiquid") is up to 20% of the entire assortment!

In other words, getting rid of these two misfortunes is extremely difficult. Both are often the result of inadequate planning and inadequate control over consumer demands. The treatment process can take months and as a result, getting rid of the global deficit syndrome, the store often ends up with an excess inventory.

What is more dangerous for the company? Deficit or surplus? By far the most dangerous situation is to have a deficit in one product and a surplus in another. Conversely, it is best not to have either. However, let us not close our eyes to the obvious - deficit and surplus were, are, and possibly will still occur. It is necessary to know the enemy by sight, therefore we will analyze in more detail these two common phenomena.

Deficiency. Its causes and consequences

Deficit- excess of demand over supply. A deficit indicates a mismatch between supply and demand and the absence of a countervailing price.

The deficit can be temporary or permanent. But in any case, its consequences are quite obvious - the company receives less profit. However, not all so simple. If the deficit is of a permanent protracted nature, then the consequences can be sadder than it seems at first glance:

  • Lack of profit due to too low prices;
  • Direct losses due to lack of sales;
  • Deterioration of the store's image in the eyes of customers: "There are never the right products here";
  • Loss of potential and real customers;
  • Empty store shelves, unfilled counters;
  • Sales growth for competitors who have such a product;
  • Costs due to actions aimed at eliminating the deficit - moving goods on the shelves, urgent search for a substitute product;
  • Wasted money on advertising campaign or tasting;
  • Stress among employees and, as a result, their demotivation.

The consequences of a deficit are more concerned with external environment store and are especially dangerous for a company that is in the stage of growth and development, when winning customers and their loyalty is a strategic goal.

Let's consider the possible factors due to which we have dissatisfied buyers, nervous sellers and the lack of goods in stock:

1. Unbalanced price (demand outstrips supply). Scarcity usually indicates a low supply caused by a low price. “Snapped up like hotcakes,” we say, implying that the goods leave quickly. Too fast. So fast that we can't keep up with the increased demand. A prime example is merchandise during sales. A discount of up to 50% has been announced, and as a result, people are pouring into the store, buying everything that has yellow price tags. Who doesn't want to buy candy at half the price? However, the price is not always the only reason for the deficit.

What to do? To raise the price.

2. Errors in planning purchases and sales analysis. As a rule, this reason lies in people who, for some reason, do not do their job well. Perhaps they are not trained, perhaps they do not see the connection between the purchased and the sold product. One way or another, without serious analysis of sales and without precise planning, the company quickly gets an unbalanced stock. The manager of the production company says: “When we first started producing these dumplings, no one knew how they would be sold. We made a batch for testing and, surprisingly, it went very well. Then we launched another batch. Our sales department was enthusiastic began to "promote" the goods. A week later, the wholesalers almost smashed the plant - the demand for this product was so great. And everyone wanted it immediately, but our production could satisfy only half of the total demand ... And a month later, customers began to refuse purchases, citing too long a waiting period ... The people in the stores tried the dumplings, but the lack of goods on the shelf led to the fact that all efforts to promote were wasted. " Lack of accurate forecasts and planning of purchases leads to a direct loss of buyers. They tend to forget about a new product if they don't see it on sale for a long time.

What to do? Teach buyers planning, figure out why the analysis does not show the whole picture. Maybe the point is in the incorrect accounting of positions - when "there is in the computer," but not in the warehouse?

3. Changes in the current market situation (appearance new fashion, trend, law). A familiar picture, isn't it? Just yesterday, the hole in the jeans seemed like a disaster. And today, young shoppers go to stores in search of the most torn and shabby goods. A new trend towards healthier lifestyles is forcing buyers to ask and sellers to rush to fill warehouses with items labeled "0 calories" or "low fat" or "soy free." If yesterday was accepted new law that all children under 12 years old must be transported only in a child car seat, that is, there is a possibility that such car seats will suddenly begin to be in increased demand.

What to do? Respond to customer requests and new laws in a timely manner, keep your finger on the pulse, make market research your direct responsibility. Or wait until the end of the law ...

4. Active advertising or PR campaign. A case from life: “We have a regular store selling many products from different manufacturers. Suddenly buyers start to actively ask“ that yoghurt that is in the advertisement. ”We have never sold it so actively! advertising on television and in family magazines. I wanted to make a surprise for us. If we knew in advance about this action, of course, we would have prepared and increased the stock of this yogurt ... ". In our country, people trust advertising and actively buy the advertised product. Therefore, such a "surprise" attack on the consumer leads to nothing but problems and scarcity.

What to do? Educate suppliers by explaining to them the consequences of such activities. Before any action, increase orders according to the planned growth in demand.

5. Logistic problems. The item can be ordered correctly. The correct price can be set on it. It is being advertised correctly. But if for some reason it is not delivered to the warehouse or is late to the store, there is a high probability of being in a state of shortage. This is especially true for perishable goods (meat, fish, dairy products, bread), where one day of delay can reject the entire batch. If instead of the planned two days the cargo moves to the store for four days, then all ideal planning comes to naught - the store gets two days of work with empty shelves. Sometimes this is enough to lose many regular customers and earn the image of a store "where there is never anything".

What to do? Work with those suppliers and transport companies who take responsibility for the delay of the goods. Or not work with those who fail constantly. After all, this is your money.

6. The goods are ordered without regard to complexity. There is a product whose sales affect the sales of another - for example, champagne and candy, flour and yeast, green peas and mayonnaise. In such a case, the qualifications of the manager who draws up the purchase order may have crucial... “In our company, orders for beer are taken by one manager, and another is responsible for snacks, chips, crackers and nuts. The trouble is that they operate separately from each other. A shortage of one product makes it difficult to sell another.

What to do? Deal with the qualifications and motivation of your staff. Or sort out the categories of goods - who is responsible for what. Are buyers motivated enough for such a result as selling goods?

7. Social and environmental factors. Weather, ecology, epidemics can provoke an unexpected high demand for a product. If the summer is very hot, then the demand for ice cream and soft drinks may exceed the supply several times. An unexpected water cut in the area provokes a demand for bottled water. During the SARS epidemic, the demand for respirators in China jumped dozens of times! This deficit is in the nature of an outbreak and ends as abruptly as it begins.

What to do? You can wait - such phenomena pass quickly. You can have time to respond to demand, quickly purchase the required product and earn decent money on the increased demand.

Surplus goods. Ways to sell surplus

Excessive stock can be:

  • turnable, but too large. Then it makes sense to first of all reduce the volume of purchases of this product.
  • have a slow turnover. In this case, it is more correct to first lower the price and stimulate sales.
  • "dead", that is, not to be sold at all. If a product has not been consumed for three months 1, then it falls into the category of "dead". In this case, you can try to perform other actions.

But before the necessary steps are taken, it is necessary to understand the reasons for the excess:

1. Unbalanced price(the price is too high for this market or for a given type of product). No one will overpay for a product or service if the market price has already been set or exceeds reasonable limits.

2. Expired or expired. The store sells food products, including perishable goods (for example, fish), or has in its assortment products with a limited shelf life (household chemicals, cosmetics). Failure to sell it on time leads to the formation of substandard goods. It is practically not subject to further processing and sale.

3. Errors in sales forecasts. A buyer from one of the largest trading companies: "When we just started purchasing this vegetable juice, no one knew how it would be sold. We brought a batch for testing and, surprisingly, it went very well. Then we ordered three more containers of this juice ... And sat down with a six-month supply - all of a sudden customers who actively bought juice at first stopped taking it altogether, tasted it and didn't like it ... ". Purchase of goods at random and leads to such sad results.

4. Over-purchasing. For example, we sell 30-32 bottles of wine per month. But the purchased batch is 24 bottles - this is the minimum packaging from the supplier's warehouse. We cannot buy less, and we have to buy more - 2 batches of 24 bottles in order to meet the demand. If we do not stimulate the demand for this wine, then very soon we will find ourselves in a situation of excess production.

5. Commodity cannibalism(the appearance of one product displaces the sales of another). In order to expand the assortment, the company introduced cheaper milk into the assortment. good quality... As a result, the demand for milk from other brand, and after a short time there was an excess of this product in the warehouse.

6. Changes in the fashion or taste of consumers. The emergence of DVD technology on the market has brought a verdict on the video cassette recorder. In food, fashion does not change as quickly as in the markets for manufactured goods, but the emerging and then rapidly disappearing fashion for bouillon cubes can be cited as a classic example. At first they were in great demand, then the consumer "got full" prepared food and turned his gaze to the side healthy way life. At one time, soy products were very popular, but now there is a lot of information that genetically modified components are often found in soy. As a result, the demand for soybeans and products containing it dropped sharply.

7. Legislative acts(prohibition on the sale of products). The ban on the sale of poultry meat in some countries due to the threat of the bird flu epidemic has led to the fact that millions of tons of chicken meat were transferred into surplus, and then into substandard goods. The introduction of censorship on beer advertising led to a decline in sales

8. Incomplete goods, erroneous proportions when ordering complete goods. As a result, there is a shortage for some goods, and a surplus for others. The director of one vegetable pavilion says: “We sell vegetables. and no beets. "

9. Reservation in anticipation of an increase in demand or prices(v wholesale companies). Managers can issue additional invoices to protect themselves in the event of a shortage. If the purchasing department is not aware of such "reservation" facts, then the delivery of goods to the warehouse continues. After a short time, it turns out that the goods were in reserve not at the request of customers, but at the will of the sellers and real demand goods are not secured.

There are, of course, a thousand reasons for stock keeping in stock. But you need to understand that if the product is not for sale, then it does not contribute to the emergence of profit, for which the business exists. Purchased goods are related funds. You invested them. And no matter how much these reserves are now, the money is gone.

And although this is not the most the best way- sell goods for a penny, but perhaps this is better than believing that one day the client will come to his senses and buy all the dusty piles of cans in the warehouse. Don't get used to your stocks! The goal of inventory reduction is to get rid of unwanted items at the most favorable price or at minimal cost.

This can be done in different ways:

1. Discount sale or global price cut.

2. Incentives for sales personnel. You can assign cash or in-kind reward to sellers for the sale of "illiquid assets". This works especially well if the customer can choose between several types of products.

3. Selling to competitors at discounted prices. Perhaps you just have a surplus of good selling goods, and your competitor is in dire need of it around the corner. Why not give it a try?

4. Promotions to stimulate demand for this product(artificial creation of demand). Requires additional investments in advertising, but often brings good results (for example, to hold a wine tasting or decorate a gourmet corner where cheese and grapes will be laid out along with wine)

5. Creation of artificial shortages. Sometimes it is enough just to announce that there will be no deliveries of the goods for the next two weeks (for example, due to vacations or holidays). This helps to optimize the stock if the product has a good turnover, but is purchased in excess.

6. Return to supplier or manufacturer. The best time for this kind of negotiation is in the lead-up to a new line purchase agreement or a large purchase order. Case study: “We just opened a store and took the supplier’s advice to buy a batch of expensive wines. It didn’t work, and for three months our warehouses had a stock of these wines in the amount of almost $ 4,000. During this time, our relationship with the supplier developed and One fine day we turned to him with a request to take back this product, which was so incorrectly imposed on us. The supplier refused. Then we negotiated that we would be able to repay our loans only by restructuring the debt at the expense of this fault As a result, the supplier bought this consignment from us in parts on account of our debt. " Naturally, this method is only good for those products that can be stored for a sufficient time under suitable conditions.

7. Creation of "kits"(in socialist times it was called "in the load"). The stale goods are given as a bonus or as a gift. It is also possible to sell the surplus on a two-in-one basis (“when you buy two cans of peas, you get a third can (or a can of corn) for free!”).

8. Selling goods to your own staff or using them for the needs of the company. In some stores there is a culinary department, where the goods are transferred with the expiration date. The main thing here is the strictest quality control of such products, so that in no case does not violate the real terms of implementation - the consequences can be the most sad. One well-known Western company practiced a method of selling goods to employees with an expiring (by no means expired!) Expiration date at symbolic prices. However, soon the abuse (resale in the markets) on this basis became so obvious and large that this practice was discontinued. This way of getting rid of excess is as effective as it is dangerous. Before you resort to it, make sure that you are able to control the entire chain of goods movement.

9. Implementation charity events or donations. Give the product to those who might need it. You will not only get rid of the surplus, but also do a good deed. The main thing is to inform as many people as possible about this good deed ...

When the total quantity of goods offered by manufacturers exactly coincides with the quantity of goods that consumers are planning to buy, i.e. and the plans of buyers and sellers coincide, then no one has to change these plans - the market is in a state of equilibrium.

The meaning of balance: at the point of intersection (at the point of equilibrium), the quantity coincides that the consumer wants to buy and the manufacturer wants to sell. And only at such a price, when these plans for selling and buying coincide, the price does not tend to change.

Market Equilibrium Law states that the price of any good changes to bring the supply and demand of the good into equilibrium. Stable balance- a state, deviation from which leads to a return to the same state. Competitive price- the equilibrium price formed in a competitive market. Thus, in a competitive market, subject to the dependence of the demand for a product on its price, an equilibrium market price is established, corresponding to the equalization of supply and demand. The market price is called free, that is, it is free from external dictate, but not free from the laws of the market. Equilibrium volume - the volume of supply and the volume of demand in conditions when the price balances supply and demand.

Supply and demand curves representing the plans of buyers and sellers can be used to graphically show market equilibrium.

If we compare the planned quantities of sales at each price with the quantities of purchased goods planned at the same prices, we will notice that there is only one price at which the plans of sellers and buyers coincide. This price - $ 0.40 per pound - is the equilibrium price. If all buyers and sellers make their plans, taking into account the indicated price, then no one will have to rebuild on the go.

Commodity deficit. Suppose the price is only $ 0.20 per pound, and at this price consumers plan to buy 2.5 billion pounds of product per year, but sellers plan to offer only 1.5 billion pounds to the market. When the amount of demand exceeds the amount of supply of a product, then the difference is called the amount of excess demand, or deficit. In most markets, the first sign of a shortage is a sharp decrease in inventories, that is, those stocks of goods that have already been produced and are ready for sale or use.Sellers usually keep some of the goods in stock in order to quickly respond to minor changes demand.

When the amount of inventory decreases and falls below the target, the sellers change their plans. They may try to replenish stocks by ramping up production or, if they are not producing the product themselves, they may increase the order to the manufacturer. Some sellers will benefit from the increased demand by increasing the price because they know that buyers are willing to pay more. But whatever the details, the result will be a move up the supply curve as the price and quantity of the product increase. Since the deficit puts pressure on the price from below, buyers will also be forced to change their plans. Moving left and up the demand curve, they will cut back on their consumption. As a result of changes in the plans of buyers and sellers, the market comes to equilibrium. When the price hits $ 0.40 a pound, the deficit will disappear.


Service market deficit. In most markets, sellers have inventory, but inventory is not possible in service markets - hairdressers, laundries, etc. In markets where there is no inventory, a sign of scarcity is a queue of buyers. The queue is a sign that, given the prevailing price, buyers are willing to consume the product faster than the manufacturers plan to bring it to the market. However, customer requests may not always be met right away. Customers are served on a first come, first served basis.

Excess goods. Having considered the situation when buyers and sellers expect prices lower than the equilibrium price, consider the opposite case. Suppose that for some reason, buyers and sellers expect the price to be higher than the equilibrium price ($ 0.60 per pound) and plan their activities in accordance with these expectations. When the amount of supply exceeds the amount of demand for the product, then there is excess.

Excess and stocks of goods. When there is a surplus of product, sellers cannot sell everything they hoped to sell at a given price. As a result, their inventories increase and soon exceed the level that was planned in the event of normal changes in demand. Sellers will respond to the rise in inventory by changing their plans. Some of them will reduce the production of goods. Others will lower prices to encourage customers to consume more, and thus reduce their oversupply. Still others will do both. As a result of these changes, there will be a movement to the left and down along the supply curve. As excessive inventories put pressure on the price from above, buyers also change their plans. After making sure that the product is cheaper than they expected, they move down and to the right along the curve, the market comes to a state of equilibrium.

The market is a mechanism of interaction between buyers and sellers who pursue their economic interests. The economic interest of buyers is to buy cheaper goods and satisfy their needs, so they offer prices for them, called demand prices. Under at the cost of demand means that maximum maximum price at which the buyer still agrees to purchase the goods. Sellers are interested in selling goods at a higher price and therefore present offer prices , representing the minimum prices at which they are still willing to sell their goods. The intersection of the economic interests of buyers and sellers, the interaction of supply and demand can be represented by combining the graph of their curves.

R 2 A B

P 1 E

R 3 C D

0 Q1 q

When the interests of producers and consumers coincide, a market equilibrium arises, reflecting the equality of the desires and capabilities of buyers and sellers. Point E, at which the supply and demand curves intersect and their interests coincide, is called the point of market equilibrium, and the corresponding price P 1 is called the equilibrium price. Equilibrium price Is the price at which the quantity of goods offered on the market is equal to the quantity of goods for which demand is presented.

When the market price is established above the equilibrium price (Р 2> Р 1), then the supply exceeds the demand, since the growth of the price according to the law of supply will stimulate an increase in production, and according to the law of demand, it will reduce the desire to purchase goods. The result is excess of goods(from A to B), which will lead to overstocking of the market.

In this case, competition begins between the sellers of this type of product, which will help reduce the price and bring it closer to the equilibrium point E.

If the market price is established below the equilibrium price (Р 3<Р 1), то это в соответствии с законом спроса побуждает покупателя наращивать объем покупок, но по закону предложения приводит к снижению деловой активности производителя. В итоге спрос превысит предложение (от С до D), то есть возникнет shortage of goods... At the same time, competition between buyers intensifies, which leads to an increase in prices, an expansion of production and a return of prices to its equilibrium value. Above the equilibrium market price cannot rise, because the buyer simply does not have enough money to purchase the goods.

So, thanks to the manifestation of the laws of demand, supply and competition, market equilibrium is restored.

Topic 5. Basics of the behavior of subjects of a market economy

Theme plan

1. The concept of a rational consumer. General and marginal utility. The law of diminishing marginal utility.

2. Organization (firm) as an economic entity.

3. Production function. General, average and marginal product. The law of diminishing marginal productivity.

4. Concept and classification of costs.

5. Income and profit of the firm. The rule of maximizing profits.

Demand - the desire and ability of consumers to purchase certain goods in the given economic conditions. Availability of demand depends on the needs of the buyers.

The amount (volume) of demand - some. quantity of goods that a consumer, a group of consumers, or the population buys by definition. price per unit of time under the given conditions.

V market conditions demand acts as effective demand , which is determined by the amount of money that the buyer is willing to spend on the purchase of goods.

The amount of demand for a product depends on various factors, primarily on the price of this product: Qdx = f(Px), where Qdx – volume of demand for a product NS; Px–The price of demand for goods NS.

Bid price – the maximum price that the buyer agrees to offer for a unit of goods at a certain point in time. The higher the price of the goods, the less opportunity and desire of the consumer to buy this product (if, of course, the latter can be replaced with something else). This functional dependence makes up the content the law of demand : other things being equal, than the higher the price of a good, the less the amount of demand for it, and Borot, the lower the price, the greater the amount of demand.

When demand is down , on the graph the demand curve shifts Xia left-down (from position D 1 in position D 2), not necessarily parallel to the original position.

Sleep demand means that for the same price (for example, P3) the consumer buys fewer goods - not Q2, aQ1 (shift the curve to the left), or for the same quantity of goods (for example, Q2) he is ready to pay a lower price - not P3, but Р1(shift the curve down).

Offer - these are specific goods and services that producers are willing and able to produce, as well as sell in the given economic conditions. This dependence is reflected in supply law: with the growth of the price the value of supply increases, with a decrease in price, the value of on offers is decreasing.

Let's combine the market curves on one chart. demand and market. suggestions. At the point E they will intersect, while the quantities of supply and demand will be equal and will reach the equilibrium volume of production Q e at equilibrium price R e . This point of intersection of the supply and demand curves called the point of the static market equals weight.

Supply and demand on the market constantly fluctuate, and the position of the equilibrium point changes accordingly. In the state of equilibrium, neither buyers nor sellers have incentives to change their behavior, i.e. changes in the amount of demand or supply. Indeed, all consumers who are willing to pay the price for a unit of goods R e or higher can buy this product, for other buyers it will remain too expensive.

At the same time, sellers who are able to put goods on the market at a price R e or cheaper, will be able to find their buyer, and other, less efficient producers will be forced to leave the market.

The question is how market equilibrium is established , complicated. Suppose manufacturers want to set a price for their product R 1. At this price, they will be able to put on the market goods in quantities Q 2 (point 2). However, at such a high price, buyers will only want and will be able to buy the quantity Q 1goods (in accordance with point 1 on the demand curve). The market will have surplus of goods v quantityQ2 – Q1.

Competition between sellers will force them to lower the price in order to sell their product. The market price will start to drop, and those sellers who will be unable to reduce the price to the value R e , leave the market. If the market price falls to a level P2, then at such a low price, consumers will demand in quantity Q2 (point 4). But whether they will be able toput only a small amount of goodsQ1 (point3), and onmarket will ariseshortage of goods , as a result of competition between purchases, prices will rise to the level R e .

Surplus and deficit

Procurement planning based on inaccurate data can lead to incorrect determination of the required inventory of goods. Managing the surplus of goods with increased consumer demand is not particularly difficult and is solved by reducing the volume of purchases and thus bringing the inventory to a normal level. Surplus goods that are not in consumer demand increase the costs of the enterprise for their storage and require the development of special measures for their implementation.

Irregularity in the supply of goods leads to a shortage of inventory in the warehouse and creates significant difficulties in meeting the needs of customers. When there is a shortage of goods, the wholesale company either refuses to serve consumers, or seeks ways to meet their needs, making special purchases that require additional capital investment.

Irregular shipments of goods require the creation of a safety stock sufficient to meet the needs of consignees in the period between deliveries.

Equilibrium on the market is called situation when sellers offer for sale exactly the amount of goods that buyers decide to purchase ( the volume of demand is equal to the volume of supply ).

Since buyers and sellers want to sell or buy different quantities of a good depending on its price, market equilibrium requires that a price be established at which the volumes of supply and demand coincide. In other words, price equalizes supply and demand.

The price that causes the coincidence of the volumes of demand and supply is called the equilibrium price, and the volumes of demand and supply at this price are called the equilibrium volumes of demand and supply.

Under equilibrium conditions, the so-called clearing of the market takes place: there will be neither unsold goods nor unsatisfied demand in the market (buyers who want to buy goods at a fixed price and who could not do it due to the absence of sellers).

Thus, in order to find equilibrium in the market for a certain good, it is necessary to determine what price will cause in this market such a volume of supply that will correspond to the volume of demand: at this price, sellers will bring to the market exactly as much of the good they have produced as buyers want to carry. Such a price is called the equilibrium price, and the supply and demand volume corresponding to it is called the equilibrium supply and demand volumes.

The speed with which the market finds an equilibrium price depends on the "mobility" of its participants and on the ease of transmission of information in the market (that is, on the perfection of the market).

Under the equilibrium of the industry market understand the optimization of the size of firms in a given industry while reducing prices in the industry market to the level of minimum average production costs. Equilibrium in the industry is achieved when each firm reaches its equilibrium.

Demand curve industry shows how many products all consumers will purchase. It decreases as consumers buy more goods at a lower price. The price here is determined by the interaction of all firms and consumers in the market, and not by the decision of an individual firm.

Industry supply curve shows the volume of output that the industry makes at every possible price. The output of an industry is the total supply of all individual firms.

Sectoral equilibrium occurs when conditions:

All industries maximize profits.

All factors of production become variable and the number of firms in the industry changes.

No firm has an incentive to enter or exit the industry, as all firms receive zero economic profits. In other words, the price should be equal to the average total cost. Since getting into and out of an industry is easy enough, positive or negative economic gains encourage firms to change. An industry cannot be in equilibrium if firms are on the move: either entering or exiting the industry. Long-term equilibrium requires all industry changes to be completed.

The price of a commodity is such that the aggregate supply is equal to the aggregate demand.

Thus, the equilibrium of an industry market is understood as the optimization of the size of firms in a given industry while reducing prices in the industry market to the level of minimum average production costs. Sectoral equilibrium occurs when the following conditions are met: all industries maximize profits; all factors of production become variable and the number of firms in the industry changes; no firm has an incentive to enter or exit the industry; the price of the good is such that the aggregate supply is equal to the aggregate demand.

Market equilibrium can only be considered relative to a fixed unit of time. At each subsequent moment of time, market equilibrium can be established as some new value of the market equilibrium price and the amount of sales of goods at this price, taking shape during a month, season, year, a number of years, etc. but market equilibrium is always a state of the market in which QD = QS (demand volume = supply volume). Any deviation from this state sets in motion forces that can return the market to a state of equilibrium: eliminate the deficit (QD> QS) or surplus (surplus) of goods on the market (QD< QS).

Thus, surplus arises if, at a certain price, the value of the supply of goods exceeds the value of demand for it.

A product is in short supply if the value of the demand for the product is greater than the value of its supply.

Consumers do not always think that existing prices are optimal. The point is that the imperfection of the social structure of production on the surface appears as an imperfection of the price system. Public dissatisfaction with existing equilibrium prices forms a fertile ground for government intervention in market pricing... In practice, this translates into setting maximum or minimum prices. If the maximum price set by the state ("price ceiling") is below the equilibrium level, then a deficit is formed, if the state sets the minimum price above the equilibrium level (the so-called subsidized price), then a surplus is formed. Fixing prices means disabling the market coordination mechanism. In conditions when the price is below the equilibrium level, the deficit does not decrease, but increases, in addition, non-monetary costs are added to the consumer's monetary costs. The latter are associated with the search for goods, standing in queues, etc. - all of them are deadweight costs that do not serve to expand the production of scarce goods. They settle in the sphere of distribution of scarce goods, and do not reach those who actually produce them. The price ceiling "cuts" the producers' surplus and thereby reduces the incentives to produce it at those enterprises that have minimal production costs of this product. Therefore, the deficit does not decrease. On the contrary, those who sell (or distribute) the scarce product are interested in preserving it, since it becomes a source of their income (since it increases the amount of non-monetary costs). Therefore, they will do their best to promote government regulation prices under various "plausible" pretexts.



In cases where the price is above equilibrium, there is a need for additional measures to stimulate supply restriction and an increase in demand in order to narrow the gap between the subsidized and equilibrium prices. In both cases market economy begins to function less efficiently than in conditions of perfect competition.

The counterbalancing function is performed by the price, which stimulates the growth of supply when there is a shortage of goods and relieves the market from surplus, restraining the supply. According to Walras, in conditions of deficit, buyers are the active side of the market, and in conditions of surplus, sellers. According to Marshall's version, the dominant force in the formation market conditions there are always entrepreneurs.

Any surplus of goods, i.e. surplus of commodities pushes the price of commodities down to the equilibrium point. Any shortage of goods, shortage of goods on the market will push the price of goods upward, to the point of equilibrium between supply and demand. It will eventually be installed equilibrium price PE, at which the QE of goods on the market will be sold.

 

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