How is the shortage of goods on the market formula. Commodity deficit and commodity surplus: definition and consequences
2. At a price of 10 - the volume of demand is equal to the volume of supply, therefore, at this price - market equilibrium.
3. At a price of 15, supply exceeds demand - an excess of goods. Let's calculate: from the supply volume of 35 we subtract the demand volume of 15. At the price of 15, the excess of goods is 20.
We will check the obtained data on the chart at the same prices.
Example of problem solving
Task 1. Construct a graph of market equilibrium for refrigerators in a store per day. Determine the equilibrium price (Pe) and the equilibrium sales volume (Qe). Determine the presence of a shortage and an excess of goods at prices of 100 and 400 rubles.
1. Demand function: Q D \u003d 900 - R.
2. Offer function: Q S \u003d 100 + 3P.
1. Using the functions, we determine the equilibrium price and the equilibrium sales volume. To do this, we equate the functions.
900 - Р = 100 + 3Р, 900 - 100 = 3Р + Р, 800 = 4Р, Pe = 200 - equilibrium price.
Substitute the resulting equilibrium price into any of the functions: Q D = 900 - 200 = 700 or Q S = 100 + 3 x 200 = 700. The equilibrium sales volume is Qе = 700.
2. Let's build a scale.
Table 2.4
Supply and demand scale
Using the scale, we determine the excess and shortage of goods at prices of 100 and 400.
Price 100 below the equilibrium price (Pe = 200) - shortage of goods. Let us subtract 800 from the volume of demand at this price, the volume of supply 400. The deficit is 400 (400 refrigerators are not enough for buyers). Producers will raise the price so that there is no shortage.
The price of 400 is higher than the equilibrium price - an excess of goods. Let us subtract 500 demand from the supply of 1300. The excess of goods is 800 (manufacturers are willing to sell 800 more refrigerators than buyers are willing and able to buy). Producers will reduce the price to the equilibrium price in order to sell all the products.
3. Let's build a graph of market equilibrium for refrigerators per day using points from the scale. For the demand curve, take the points: P 1 \u003d 100, Q 1 \u003d 800; P 2 \u003d 400, Q 2 \u003d 500.
For the supply curve: P 1 = 100, Q 1 = 400; P 2 \u003d 400, Q 2 \u003d 1300.
Fig 2.4. market equilibrium chart
Answer. The equilibrium price is Pe = 200, the equilibrium sales volume is Qe = 700. At a price of 100, the deficit is 400 refrigerators; at a price of 400, the excess is 800 refrigerators.
Task 2. Build a graph of market equilibrium, determine the equilibrium price and sales volume. Determine and calculate the deficit and surplus of goods at prices: 5, 15, 20.
Demand function: Q D = 50 - 2P.
Offer function: Q S = 5 + P.
Table 2.5
Supply and demand scale
Rice. 2.5. market equilibrium chart
Answer. Equilibrium price 15, equilibrium sales 20. At a price of 5 rubles: the deficit is 30. At a price of 15 rubles: market equilibrium. At a price of 20 rubles: an excess of goods 15.
2.2. Elasticity of supply and demand
Having studied the concepts of supply and demand, market equilibrium and equilibrium price, we will get acquainted with elasticity. It is not enough for an entrepreneur to be able to determine the equilibrium price to achieve market equilibrium. The market situation is unstable, business activity is influenced by environmental factors: suppliers, buyers, competitors, tax and monetary policy of the state, etc. Many factors lead to price changes - decrease or increase.
Therefore, an entrepreneur needs to know how supply and demand will change when prices for his products change. Even before opening a company, an entrepreneur determines with what elasticity he will work with a product in order to know what price manipulations he can carry out to increase sales volumes, and which ones will lead to a drop in supply and demand.
2.2.1. Elasticity of demand
Basic concepts
Elasticity of demand - shows how much the volume of demand for a product will change in response to changes in factors such as price, consumer income, price of another product.
Price elasticity of demand shows how much the quantity demanded will change when the price of a product changes.
A product can be of elastic demand, inelastic demand, or demand of unit elasticity. To determine the type of elasticity, we use two indicators:
1. Coefficient of elasticity.
2. The total revenue of the seller.
1. Coefficient of price elasticity of demand (E D) - shows the relative change in the volume of demand with a relative change in price.
To calculate, we use the formula:
where P 1 - the initial price of the goods,
P 2 - new price,
Q 1 - initial demand
Q 2 - new volume of demand.
Price elasticity of demand shows the percentage change in quantity demanded when the price changes by 1%.
There are three types of elasticity of demand:
1. If the coefficient of elasticity |E D |< 1%, товары неэластичного спроса: объём спроса изменяется в меньшей степени чем цена.
2. If |E D | > 1%, then goods of elastic demand: the volume of demand changes to a greater extent than the price.
3. If |E D | \u003d 1%, then goods of demand have unit elasticity: the quantity demanded changes by the same 1% as the price.
Products with price elastic demand:
- luxury items (jewelry, delicacies);
- goods, the cost of which is tangible for the family budget (furniture, Appliances);
- easily replaceable goods (meat, fruits).
Goods with price inelastic demand:
- essentials (medicines, shoes, electricity);
- goods whose cost is insignificant for the family budget (pencils, toothbrushes);
- hard-to-replace goods (bread, light bulbs, gasoline).
Factors of price elasticity of demand.
1. Availability of substitute products and complements on the market. The more close substitutes a product has, the higher its elasticity of demand and vice versa. If any item is a less significant complement important commodity, the demand for it is usually inelastic.
2. The time frame within which the purchase decision is made. Demand is less elastic over short periods of time than over long periods.
2. The total revenue of the seller TR is calculated by the formula:
TR = P x Q, (2.9)
where P is the price of the product,
Q is the quantity of the item at that price.
Examples of problem solving
Problem 1. With an increase in the price of milk from 30 to 35 rubles. for 1 liter in the store, the volume of demand for it decreased from 100 to 98 liters. Determine the type of elasticity of demand for milk, the change in the total revenue of the seller.
R 1 \u003d 30 rubles, R 2 \u003d 35 rubles.
Q 1 \u003d 100 l, Q 2 \u003d 98 l.
|ED | = 0.13%< 1% – объём спроса сократился в меньшей степени (на 0,13%), чем выросла цена (на 1%), поэтому молоко – товар неэластичного спроса.
2. Determine how the seller's revenue will change with an increase in the price of milk from 30 to 35 rubles. per litre.
We calculate the revenue at the initial price of 30 rubles.
TR 1 = P 1 x Q 1
TR 1 \u003d 30 x 100 \u003d 3000 rubles.
Calculate the seller's revenue new price 35 rub.
TR 2 = P 2 x Q 2
TR 2 \u003d 35 x 98 \u003d 3430 rubles.
∆TR = TR 2 – TR 1
∆TR \u003d 3430 - 3000 \u003d 430 rubles.
Answer. Since milk |E D |< 1%, то спрос неэластичен, то есть он слабо реагирует на изменение цены. При повышении цены на молоко объём спроса сократился незначительно. Поэтому выручка продавца, несмотря на повышение цены, выросла на 430 руб.
Task 2. When the price of apples increases from 65 to 90 rubles. for 1 kg in the store, the volume of demand for it decreased from 30 to 18 kg. Determine the type of elasticity of demand for apples, the change in the total revenue of the seller.
1. Calculate the price elasticity of demand.
R 1 \u003d 65 rubles, R 2 \u003d 90 rubles.
Q 1 = 30 kg, Q 2 = 18 kg.
|ED | \u003d 1.55% > 1% - the volume of demand decreased to a greater extent (by 1.55%) than the price increased (by 1%), so apples are a product of elastic demand.
2. Let's determine how the seller's revenue will change with an increase in the price of apples from 65 to 90 rubles. per kg.
Let's calculate the revenue at the initial price of 65 rubles.
TR 1 = P 1 x Q 1
TR 1 \u003d 65 x 30 \u003d 1950 rubles.
Calculate the seller's revenue at the new price of 90 rubles.
TR 2 = P 2 x Q 2
TR 2 \u003d 90 x 18 \u003d 1620 rubles.
Calculate the change in revenue and draw a conclusion.
∆TR = TR 2 – TR 1
∆TR \u003d 1620 - 1950 \u003d -330 rubles.
Answer. Since apples |E D | > 1%, then demand is elastic, that is, it is sensitive to price changes. When the price of milk rises, the quantity demanded falls more than the price rises. Therefore, the seller's revenue decreased by 330 rubles.
Task 3. With an increase in the price of umbrellas from 500 to 1000 rubles. for 1 umbrella in the store
the volume of demand for them decreased from 80 to 40 pieces. Determine the type of elasticity of demand, the change in the total revenue of the seller.
1. Calculate the price elasticity of demand.
P 1 \u003d 500 rubles, P 2 \u003d 1000 rubles.
Q 1 = 80 pcs., Q 2 = 40 pcs.
|ED | \u003d 1% \u003d 1% - the volume of demand decreased to the same extent as the price increased (by 1%), so the umbrella is a demand good of unit elasticity.
2. Determine how the seller's revenue will change.
We calculate the revenue at the initial price of 500 rubles.
Work description
The purpose of studying the discipline is the formation of future specialists' theoretical and practical knowledge in the field of economic theory, the formation of practical skills in solving economic problems.
aim methodological development is the presentation of practical material for students to solve problems in economic theory.
The equilibrium price is the price at which the quantity demanded in the market equals the quantity supplied. Expressed as Qd(P) = Qs(P) (see basic market parameters).
Service assignment. This online calculator is aimed at solving and checking the following tasks:
- Equilibrium parameters of the given market (determination of the equilibrium price and equilibrium volume);
- Coefficients of direct elasticity of supply and demand at the equilibrium point;
- Consumer and seller surplus, net social gain;
- The government introduced a commodity subsidy from each sold unit of goods in the amount of N rubles;
- The amount of the subsidy directed from the state budget;
- The government introduced a commodity tax on each sold unit of goods in the amount of N rubles;
- Describe the consequences of the government's decision to fix the price of N above (below) the equilibrium price.
Instruction. Enter the supply and demand equations. The resulting solution is saved in a Word file (see the example of finding the equilibrium price). A graphical solution of the problem is also presented. Qd - demand function, Qs - supply function
Example. Demand function for this product Qd=200–5P , supply function Qs=50+P .
- Determine the equilibrium price and equilibrium sales volume.
- Suppose the city administration decided to install fixed price at the level: a) 20 den. units per piece, b) 30 den. units a piece.
- Analyze the results. How will this affect the behavior of consumers and producers? Present the solution graphically and analytically.
Solution.
Find the equilibrium parameters in the market.
Demand function: Qd = 200 -5P.
Offer function: Qs = 50 + P.
1. Equilibrium parameters of a given market.
At equilibrium Qd = Qs
200 -5P = 50 + P
6p=150
P equals = 25 rubles. - equilibrium price.
Q equals = 75 units. is the equilibrium volume.
W \u003d P Q \u003d 1875 rubles. - income of the seller.
Consumer surplus measures how much better an individual lives on average.
consumer surplus(or gain) is the difference between the maximum price he is willing to pay for the good and the price he actually pays. If we add up the surpluses of all consumers who purchase this product, then we get the size of the total surplus.
Producer Surplus(win) is the difference between the market price and the minimum price for which producers are willing to sell their product.
Seller's surplus (P s P 0 E): (P equals - Ps) Q equals / 2 = (25 - (-50)) 75 / 2 = 2812.5 rubles.
Buyer's surplus (P d P 0 E): (Pd - P equal) Q equal / 2 = (40 - 25) 75 / 2 = 562.5 rubles.
Net social gain: 2812.5 + 562.5 = 3375
The knowledge of surpluses is widely used in practice, for example, when distributing the tax burden or subsidizing industries and firms.
2) Suppose that the city administration decides to set a fixed price of 20 den. units a piece
P fix = 20 rubles.
Volume of demand: Qd = 200 -5 20 = 100.
Supply volume: Qs = 50 + 120 = 70.
After fixing the price, the volume of demand decreased by 25 units. (75 - 100), and the deficit of producers decreased by 5 units. (70 - 75). There is a shortage of goods in the market in the amount of 30 pcs. (70 - 100). 
Suppose the city administration decides to set a fixed price of 30 denier. units a piece.
P fix = 30 rubles.
Volume of demand: Qd = 200 -5 30 = 50.
Supply volume: Qs = 50 + 1 30 = 80.
After fixing the price, the volume of demand increased by 25 units. (75 - 50), and the producers' surplus increased by 5 units. (80 - 75). There is a surplus of goods in the market in the amount of 30 pieces. (80 - 50). 
The table shows the scale of supply and demand for goods
| P (thousand rubles / per unit) | Qp (thousand units per year) | Qs (thousand units per year) |
|1 |25 |5 |
|2 |20 |10 |
|3 |15 |15 |
|4 |10 |20 |
|5 |5 |25 |
1) Determine the equilibrium sales volume and price?
2) Determine the volume of demand for goods and the volume of supply of goods at a price of P \u003d 2 thousand rubles. per unit?
3) What situation arises in the commodity market at a price of P = 2 thousand rubles. per unit (shortage or overstocking)?
4) Determine the amount of deficit or surplus in the market at a price of P = 2 thousand rubles. per unit?
5) What will sellers do if they find that there is a shortage (surplus) in the market?
Answers:
Solution: 1) analytically, based on the initial data, we determine the supply and demand functions. Qp=a-bP - demand function (based on the initial data - a linear function). Then: 25=а-b; 20=a-2b; Let's solve the system of equations: a=25+b; 20=25+b-2b; b=5; a=30, then the demand function looks like: Qp=30-5P. Qs=a+bP is the supply function (based on the initial data, it is a linear function). 5=a+b; 10=a+2b; a=5-b; 10=5-b+2b; b=5; a=0, then the offer function looks like: Qs=5P. Let's determine the equilibrium price: 30-5P=5P; Then P=3 is the equilibrium price. Let's define the equilibrium sales volume: Qeq.=5*3=15 pcs. is the equilibrium sales volume. 2) Let us determine the volume of demand for goods and the volume of supply of goods at a price of P = 2 thousand rubles. per unit Qp=30-5P=30-5*2=20 thousand units per year - the volume of demand for goods; Qs=5*2=10 thousand units per year - the volume of supply for the product. 3) What situation arises in the commodity market at a price of P = 2 thousand rubles. per unit (shortage or overstocking)? Since at P \u003d 2 thousand rubles. per unit the volume of demand for the goods is 20 thousand units. per year, and the volume of supply is 10 thousand units. per year, there will be a shortage in the market. 4) The volume of deficit in the market at a price of P=2 thousand rubles. per unit will be 10 thousand units. in year. 5) What will sellers do if they find that there is a shortage (surplus) in the market? If there is a shortage of goods on the market, then the sellers will raise the price of the goods accordingly, if there is an excess, then the price will decrease.
Price 100 below the equilibrium price (Pe = 200) - shortage of goods. Subtract from the volume of demand at this price 800 the volume of supply 400. The shortage is not enough refrigerators for buyers). Producers will raise the price so that there is no shortage.
The price of 400 is higher than the equilibrium price - an excess of goods. Let us subtract 500 demand from the supply of 1300. The excess of goods is 800 (manufacturers are willing to sell 800 more refrigerators than buyers are willing and able to buy). Producers will reduce the price to the equilibrium price in order to sell all the products.
3. Let's build a graph of market equilibrium for refrigerators per day using points from the scale. For the demand curve, take the points: P1 = 100, Q 1 = 800; P2 \u003d 400, Q 2 \u003d 500.
For the supply curve: P1 = 100, Q 1 = 400; P2 \u003d 400, Q 2 \u003d 1300.
Fig 2.4. market equilibrium chart
Answer. The equilibrium price is Pe = 200, the equilibrium sales volume is Qe = 700. At a price of 100, the deficit is 400 refrigerators; at a price of 400, the excess is 800 refrigerators.
Task 2.Build a market equilibrium graph, determine the equilibrium price and sales volume. Determine and calculate the deficit and surplus of goods at prices: 5, 15, 20.
Demand function: QD = 50 - 2 P .
Suggestion function: QS = 5 + P .
Solution:
Table 2.5
Supply and demand scale
P, price | QD | QS |
Rice. 2.5. market equilibrium chart
Answer. Equilibrium price 15, equilibrium sales 20. At a price of 5 rubles: the deficit is 30. At a price of 15 rubles: market equilibrium. At a price of 20 rubles: an excess of goods 15.
2.2. Elasticity of supply and demand
Having studied the concepts of supply and demand, market equilibrium and equilibrium price, we will get acquainted with elasticity. It is not enough for an entrepreneur to be able to determine the equilibrium price to achieve market equilibrium. The market situation is unstable, business activity is influenced by factors external environment: suppliers, buyers, competitors, tax and monetary policy of the state, etc. Many factors lead to price changes - decrease or increase.
Therefore, an entrepreneur needs to know how supply and demand will change when prices for his products change. Even before opening a company, an entrepreneur determines with what elasticity he will work with a product in order to know what price manipulations he can carry out to increase sales volumes, and which ones will lead to a drop in supply and demand.
2.2.1. Elasticity of demand
Basic concepts
The elasticity of demand is shows how much the volume of demand for a product will change in response to changes in such factors as price, consumer income, price of another product.
The price elasticity of demand is shows how much the quantity demanded will change when the price of a product changes.
A product can be of elastic demand, inelastic demand, or demand of unit elasticity. To determine the type of elasticity, we use two indicators:
1. Coefficient of elasticity.
2. The total revenue of the seller.
1. Price elasticity of demand (ED)- shows the relative change in the quantity demanded with a relative change in price.
To calculate, we use the formula:
ED= | Q2-Q1 | P1+P2 | ||
P2-P1 | Q1+Q2 |
where P1 is the initial price of the product,
P2 - new price,
Q 1 - initial demand
Q2 is the new volume of demand.
Price elasticity of demand shows the percentage change in quantity demanded when the price changes by 1%.
There are three types of elasticity of demand:
Easily replaceable goods (meat, fruits).
Goods with price inelastic demand:
basic necessities (medicines, footwear, electricity);
Goods, the cost of which is insignificant for the family budget (pencils, toothbrushes);
hard-to-replace goods (bread, light bulbs, gasoline).
Factors of price elasticity of demand.
1. Availability of substitute products and complements on the market. The more close substitutes a product has, the higher its elasticity of demand and vice versa. If a good is a less significant complement of an important good, then the demand for it is usually inelastic.
2. The time frame within which the purchase decision is made. Demand is less elastic over short periods of time than over long periods.
2. Seller's total revenue TR calculated by the formula:
TR = P x Q , (2.9)
where P is the price of the product,
Q is the quantity of the item at that price.
Examples of problem solving
Task 1. With an increase in the price of milk from 30 to 35 rubles. for 1 liter in the store, the volume of demand for it decreased from 100 to 98 liters. Determine the type of elasticity of demand for milk, the change in the total revenue of the seller.
Solution
1. Calculate .
P1 \u003d 30 rubles, P2 \u003d 35 rubles.
Q 1 \u003d 100 l, Q 2 \u003d 98 l.
ED= | Q2-Q1 | P1+P2 | ||
P2-P1 | Q1+Q2 |
ED= | 98 – 100 | 30 + 35 | = – 0,13% |
|
35 – 30 | 100 + 98 |
|ED| = 0.13%< 1% – объём спроса сократился в меньшей степени (на 0,13%), чем выросла цена (на 1%), поэтому молоко – товар неэластичного спроса.
2. Determine how the seller's revenue will change with an increase in the price of milk from 30 to 35 rubles. per litre.
We calculate the revenue at the initial price of 30 rubles.
TR 1 = P 1 x Q 1
TR 1 \u003d 30 x 100 \u003d 3000 rubles.
Calculate the seller's revenue at the new price of 35 rubles.
TR 2 = P 2 x Q 2
TR 2 \u003d 35 x 98 \u003d 3430 rubles.
∆TR = TR 2 – TR 1
∆TR \u003d 3430 - 3000 \u003d 430 rubles.
Answer. Since the milk | ED |< 1%, то спрос неэластичен, то есть он слабо реагирует на изменение цены. При повышении цены на молоко объём спроса сократился незначительно. Поэтому выручка продавца, несмотря на повышение цены, выросла на 430 руб.
Task 2. With an increase in the price of apples from 65 to 90 rubles. for 1 kg in the store, the volume of demand for it decreased from 30 to 18 kg. Determine the type of elasticity of demand for apples, the change in the total revenue of the seller.
Solution
1. Calculate price elasticity of demand.
P1 \u003d 65 rubles, P2 \u003d 90 rubles.
Q 1 = 30 kg, Q 2 = 18 kg.
ED= | Q2-Q1 | P1+P2 | ||
P2-P1 | Q1+Q2 |
ED= | 18 – 30 | 65 + 90 | = – 1,55% |
|
90 – 65 | 30 + 18 |
|ED| \u003d 1.55% > 1% - the volume of demand decreased to a greater extent (by 1.55%) than the price increased (by 1%), so apples are a product of elastic demand.
2. Let's determine how the seller's revenue will change with an increase in the price of apples from 65 to 90 rubles. per kg.
Let's calculate the revenue at the initial price of 65 rubles.
TR 1 = P 1 x Q 1
TR 1 \u003d 65 x 30 \u003d 1950 rubles.
Calculate the seller's revenue at the new price of 90 rubles.
TR 2 = P 2 x Q 2
TR 2 \u003d 90 x 18 \u003d 1620 rubles.
Calculate the change in revenue and draw a conclusion.
∆TR = TR 2 – TR 1
∆TR \u003d 1620 - 1950 \u003d -330 rubles.
Answer. Since apples |ED | > 1%, then demand is elastic, that is, it is sensitive to price changes. When the price of milk rises, the quantity demanded falls more than the price rises. Therefore, the seller's revenue decreased by 330 rubles.
Task 3. With an increase in the price of umbrellas from 500 to 1000 rubles. for 1 umbrella in the store
the volume of demand for them decreased from 80 to 40 pieces. Determine the type of elasticity of demand, the change in the total revenue of the seller.
Solution:
1. Calculate price elasticity of demand.
P1 \u003d 500 rubles, P2 \u003d 1000 rubles.
Q 1 = 80 pcs., Q 2 = 40 pcs.
ED= | Q2-Q1 | P1+P2 | ||
P2-P1 | Q1+Q2 |
ED= | 40 – 80 | 500 + 1000 | ||
1000 – 500 | 80 + 40 |
|ED| \u003d 1% \u003d 1% - the volume of demand decreased to the same extent as the price increased (by 1%), so the umbrella is a demand good of unit elasticity.
2. Determine how the seller's revenue will change.
TR 1 = P 1 x Q 1
TR 1 \u003d 500 x 80 \u003d 40,000 rubles.
Calculate the seller's revenue at the new price of 1000 rubles.
TR 2 = P 2 x Q 2
TR 2 \u003d 1000 x 40 \u003d 40,000 rubles.
Calculate the change in revenue and draw a conclusion.
∆TR = TR 2 – TR 1
∆TR = 0 rub.
Answer. Since the umbrella | ED | \u003d 1%, then the demand of unit elasticity, that is, the volume of demand, changes to the same extent as the price. Therefore, the seller's revenue did not change after the price change.
2.2.2. Supply elasticity
Basic concepts
The elasticity of supply the ability of supply or its quantity to change as a result of changes in market prices.
Depending on the level of the supply elasticity coefficient, the following types of elasticity are distinguished.
1. If Ed>1, then the sentence elastic, it is sensitive to changes in the price situation, even a slight change in price leads to a significant change in sales volumes; When the price falls, the volume of sales decreases significantly, and when the price increases, the volume of sales increases.
2. If Ed < 1, то предложение inelastic, it reacts weakly to changes in the price situation, even a significant change in price does not lead to significant changes in sales volumes. The producer cannot benefit from a favorable market situation, and in the event of a price decrease, he incurs losses.
3. If Ed= 1, then the sentence unit elasticity, changes in supply and price occur in the same proportion, the income and profit of the producer remain the same.
Coefficient of price elasticity of supply(ES ) shows the relative change in the volume of supply with a relative change in price.
The calculation formula is similar to the ED calculation formula.
ES= | Q2-Q1 | P1+P2 | ||
P2-P1 | Q1+Q2 |
The elasticity of supply depends on many factors:
1. Possibility of long-term storage and cost of storage. A product that cannot be stored for a long time or is expensive to store has a low elasticity of supply.
2. Specifics production process. In the event that the producer of a good can either increase its output when the price rises, or produce another good when the price falls, the supply of this good will be elastic.
3. Time factor. The manufacturer cannot respond quickly to price changes because it takes a known time to hire additional workers, the purchase of means of production (when it is required to increase output), or to reduce part of the workers, to make payments with a bank loan (when it is required to reduce output). In the short run, supply can be increased by an increase in demand (price) only by more intensive use available production capacity. However, this intensity can increase market supply only by a relatively small amount. Therefore, in the short run, supply is inelastic with respect to price. In the long run, entrepreneurs can increase their productive capacity through the expansion of existing facilities and the construction of new enterprises by firms. Thus, in the long run, the price elasticity of supply is quite significant.
4. Prices of other goods, including resources. In this case, it is about cross elasticity suggestions.
5. Degrees of achieved use of resources: labor, material, natural. If these resources are not available, then the supply response to elasticity is very small.
Examples of problem solving
Task 1. With an increase in the price of yogurt from 15 to 25 rubles. for 1 piece in the store, the volume of supply for them increased from 100 to 110 pcs. Determine the type of elasticity of supply, the change in the total revenue of the seller.
Solution:
1. Calculate price elasticity of supply.
P1 = 15 rubles, P2 = 25 rubles.
Q 1 = 100 pcs., Q 2 = 110 pcs.
ES= | Q2-Q1 | P1+P2 | ||
P2-P1 | Q1+Q2 |
ES= | 110 – 100 | 15 + 25 | ||
25 – 15 | 100 + 110 |
ES = 0.19%< 1% – объём предложения увеличился в меньшей степени (на 0,19%) чем выросла цена (на 1%), поэтому йогурт – товар неэластичного предложения.
2. Let's determine how the seller's revenue will change when the price of yogurt increases from 15 to 25 rubles. for 1 piece
We calculate the revenue at the initial price of 15 rubles.
TR 1 = P 1 x Q 1
TR 1 \u003d 15 x 100 \u003d 1500 rubles.
Calculate the seller's revenue at the new price of 25 rubles.
TR 2 = P 2 x Q 2
TR 2 \u003d 25 x 110 \u003d 2750 rubles.
Calculate the change in revenue and draw a conclusion.
∆TR = TR 2 – TR 1
∆TR \u003d 2750 - 1500 \u003d 1250 rubles.
Answer. Since on yogurt ES< 1%, то предложение неэластично, то есть оно слабо реагирует на изменение цены. Выручка продавца выросла на 1250 руб.
Task 2. With a decrease in the price of shirts from 500 to 450 rubles. for 1 piece in the shop
the volume of supply for them was reduced from 70 to 50 units. Determine the type of elasticity of supply, the change in the total revenue of the seller.
Solution:
1. Calculate price elasticity of supply.
P1 = 500 rubles, P2 = 450 rubles.
Q 1 = 70 pcs., Q 2 = 50 pcs.
ES= | Q2-Q1 | P1+P2 | ||
P2-P1 | Q1+Q2 |
ES= | 50 – 70 | 500 + 450 | ||
450 – 500 | 70 + 50 |
ES = 3.17% > 1% - the supply decreased more (by 3.17%) than the price decreased (by 1%), so shirts are a product of elastic supply.
2. Let's determine how the seller's revenue will change when the price of shirts decreases from 500 to 450 rubles. for 1 piece
We calculate the revenue at the initial price of 500 rubles.
TR 1 = P 1 x Q 1
TR 1 \u003d 500 x 70 \u003d 35,000 rubles.
Calculate the seller's revenue at the new price of 450 rubles.
TR 2 = P 2 x Q 2
TR 2 \u003d 450 x 50 \u003d 22,500 rubles.
Calculate the change in revenue and draw a conclusion.
∆TR = TR 2 – TR 1
∆TR \u003d 22,500 - 35,000 \u003d - 12,500 rubles.
Answer. Since ED > 1% for a shirt, the supply is elastic, that is, it is sensitive to price changes. The seller's revenue decreased significantly - by 12,500 rubles. It is not profitable for the manufacturer to reduce the prices of goods with elastic demand due to a decrease in revenue.
3. PRODUCTION COSTS
V market economy The goal of producers is to maximize profits. Therefore, entrepreneurs choose which product to produce, focusing on consumer demand and the possibility of making a profit. To increase profits, enterprises use new technologies, reduce costs.
Production volumes are affected by costs. If they increase, then the company reduces production volumes. If costs go down, then supply goes up.
Basic concepts
Costs- these are the costs incurred by the company for the organization of production and marketing of products.
Cost classification
1. fixed costs (FC)- costs that do not directly depend on the volume of output and that the company incurs even with a complete stop of production.
2. variable costs (VC)- costs that directly depend on the volume of output and include the cost of purchasing raw materials, energy, production services, etc.
3. General costs (TC)- the sum of fixed and variable costs:
TC=FC+VC(3.1)
4. Medium fixed costs (A.F.C.)- fixed costs per unit of production, which can be calculated by the formula:
5. Medium variable costs (AVC)- variable costs:
6. Average total cost- total cost per unit of production:
AC=AFC+AVC(3.4)
scale effect
scale effect– change in production costs and economic indicators due to an increase in production volume .
Depending on the nature, there are three scale effects:
1. Positive
2. Negative
3. Permanent.
Positive effect- as production volumes increase, production costs decrease.
negative effect- As production increases, costs increase.
deficit is an urgent need for an item that you do not have in stock. This situation leads to easily calculated costs. And, if for reselling companies this translates into a loss from lost profits, then for manufacturing companies it can cause downtime of capacities, which is fraught with significant risks. O more losses. In addition, in both types of companies, the situation of a regular significant deficit can lead to the loss of some customers!.. But, despite all these possible negative consequences of the deficit, many companies not only do not manage the deficit, but do not even count it!..
How to get deficit data.
There are four most common ways in which companies obtain deficit data.
- Implementation of a pre-order document, when employees who place an order do not see the stock balance, but fill in the data about what they need. Based on this document, an invoice or a transfer invoice is built, which includes all the quantities available on the balances from the pre-order. And in parallel, a primary shortage document is formed, which includes all the quantities from the pre-order, which were not on the rest of the warehouse.
- Pros. The formation of deficit documents becomes automatic and, as it were, objective - it is difficult to argue that there was no shortage.
- Minuses. There may be: as insufficient data on the shortage, when an employee who is already aware of the lack of a position will not spend time to score it in new pre-orders; and redundant data on the shortage, when in the hope of the appearance of balances in the form of a pre-order, the same need will be issued. In addition, the ability to interactively notify consumers about the absence of the position they need is lost so that they can more conveniently select the positions they need.
- It is best to use such a system when calculating the deficit distribution center, serving branches or stores that send off orders for delivery no more than once a week.
- Pros. No automatic overestimation or underestimation of deficit data.
- Minuses. Often: either the absence, in general, of any documents - if employees are in no way interested in entering them; or vice versa - a special introduction of false documents, if the employee has some interest in this.
- It is best to use such a system in a situation with 100% supply of demand with reserves. In this case, only information about the demand for products, which, in general, is not represented in the company's assortment, will be entered into such primary shortage documents. Based on this information, it will be possible to determine what other assortment is in regular demand, which means that it needs to be introduced.
- Pros. Automatic calculation of deficits. Eliminate the cost of unproductive entry of primary shortage documents - whether directly or through pre-orders. It is more difficult for interested employees to falsify information about the shortage.
- Minuses. The complexity of the mathematical models used to correctly estimate the deficits. The possibility of a technical or logical error that may lead to erroneous results.
- Such a system can be applied wherever it is economically feasible. At the same time, the implementation of such a calculation is not so expensive, for example, a module ready for 1C that will automatically calculate the deficit, and even build a demand forecast for the future based on the data obtained - st O it on http://prognoz-prodaj.ru/ only 37,760 rubles.
- Pros. It is possible to collect all the advantages of the above methods and level the disadvantages by combining the third model with the first or second.
- Minuses. Such a synthesis is not at all trivial, as it might seem at first, since for each case of different values: calculated and primary documents- it is necessary to think over a system for deciding which of them or which compilation of them should be taken into account.
So what is the deficit?
If you just stopped in bewilderment at the word “calculation” with a question, and four methods of which we then considered before, then I will explain with an example. “Is a deficit of a million rubles a lot?” - For some companies, this is more than their turnover, and against the backdrop of tens of billions of rubles, such a deficit is lost in statistical error. That is, in order to understand the entire criticality of the situation, it is necessary to operate with non-absolute values, which we still need to financially justify additional spending to combat the deficit. To assess the deficit and its dynamics, it is necessary to use relative values - that is, the same deficit, but expressed as a percentage. And here the question arises, but as a percentage of what? And here, too, there are options: in the concept ACE - Total Inventory Management - these options are commonly called types or orders of scarcity.
- The first type is the simplest: when we count the number of shortage indicators in stock - deletions - that is, incomplete shipments from the warehouse due to the lack of desired product, after which we divide this number by the total number of applications received at the warehouse. However, despite the simplicity of this technique, they try not to apply it. Firstly, in this case, the situations do not differ from each other in any way when we shipped a million and crossed out a thousand, and vice versa, when we crossed out a million and shipped a thousand. Secondly, employees have the opportunity to fictitiously reduce the shortage by splitting requests into several documents for “different” warehouse sections, which increases the number of “successfully” completed shipments. Although, to prevent such fraud, a variation of this methodology helps, based on the calculation of the deficit, no longer by the number of documents, but based on the number of lines crossed out in these documents in relation to the total number of lines in all applications. This calculation method is used in areas with the same type of products and approximately the same volume of orders by internal or external customers.
- The second type is the most common. He gained such popularity due to the fact that he highlights the deficit from the most important point of view for senior management and company owners - financial! Namely, it gives an estimate of the percentage of the company’s revenue lost due to a shortage of revenue. The calculation is carried out according to the following formula:
deficit percentage = deficit amount / (deficit amount + sales amount) , where:
the amount of the deficit is obtained by one of the four methods discussed above.
- The third type is a combination of the first two. We estimate the amount of orders not covered in full and divide them by the total of all orders. This modification of the deficit calculation is used in the calculation of supply losses in retail chains which impose severe fines for underdeliveries. For the same reason, this modification is used in some industries - in this case, the penalty turns out to be implicit, but in the event of downtime of production facilities due to the lack of a single part, this is quite justified.
Deficit fight.
After the data on the deficit is collected, and summarized in the right formula, the question usually always arises how to make it smaller. It is possible, of course, to directively oblige an employee to answer with his salary for a deficit that exceeds certain norms, but as practice shows, in such cases an enterprise loses much more than an employee. Yes, and the bookmark of everything and more, leading away from the deficit, pushes us to the other extreme, which is fraught with write-offs by expiration date, long-term freezing of funds, illiquid assets and an increase in storage costs. In general, it is always better to work with the cause, not the effect, while the deficit itself is always an unpleasant consequence, so we will formulate solutions specifically for the causes of the deficit, which are usually the following.
fictitious reserves. You have a small amount left in stock for some item, but in principle, it should be enough until the next delivery arrives. And suddenly, one of the cunning employees reserves the entire remaining quantity for himself, so that later in any case he will not experience a shortage of this position, although, perhaps, he will not need it until the very moment the next delivery arrives. At the same time, all other employees are forced to experience a real shortage, if they need this position, since they cannot take it from the warehouse - it is reserved.
Solution: introduction of liability for employees who do not use their reserves for a long time and automatic withdrawal from the reserve if it is not implemented after a certain time.
Major need. You have a stock for another two weeks, the next order has already been placed, and will arrive at the warehouse in 3-4 days. It seems that there is no reason to panic, but, suddenly, one of the internal or external clients has an urgent need for a large volume for this position, and he buys the entire stock for it.
Solution: try to ship large volumes - under an additional application-order from the supplier for this client. You can even give an additional discount to external customers for a pre-order - in any case, it will be cheaper for the company than storing such a volume for a long time in a warehouse, and then also remaining with a shortage. If the client wants to receive his entire large order here and now, then communicate with him regarding the gradual delivery in the process of the arrival of these products at your warehouse. Most probably, technological processes anyway, they will not allow him to use the entire purchased volume for the position, and he is like that, only to save on shipping and get the maximum discount. Therefore, you can fix prices and promise free shipping, the main thing is to agree that right now there will be only a partial shipment, and the second part will be delivered to him free of charge after the arrival of the next batch.
Lack of verified suppliers. Often the cause of a large protracted shortage is the bankruptcy of the main supplier, which suddenly turns out to be the one and only. The frantic search for a replacement, hasty negotiations, and the first deliveries, which often turn out to be “the first pancake”, do not improve the situation with the already empty warehouse. Not such a terrible situation, but also leading to a significant shortage, may be a delay in the arrival of a specific delivery to the warehouse. The reason may turn out to be: a long customs, and a loss on the road, and something else - in any case, the company needs a supplier for each position nearby, which, albeit not the most the best prices will provide it with everything necessary before the arrival of the main supply from the main supplier.
Solution: creation of a register of verified suppliers, in which, for each purchased commodity group should be marked:
· main supplier;
· a supplier to replace the main one if something happens to him;
· supplier to intercept if there is a delay in delivery from the main supplier.
Any company in the vicinity can act as this interception provider - even a direct competitor of the company.
Unrealistic delivery times. You can estimate the deficit - not only for the company as a whole or for specific positions, but also in the context of suppliers, branches, employees who are responsible for the supply of these positions. And if a shortage is regularly detected for one of the suppliers, then, most likely, the order for it is carried out too late. As a result, by the time the goods arrive, there is always a shortage.
Solution: calculation of real delivery times through the difference between the date of the order to the supplier and the date of delivery of products to the warehouse in order to start the order based on this real value.
Purchase errors. One way or another, but all people make mistakes - and the employees of the purchasing department are no exception. As they say, if "every doctor has his own cemetery", then each supplier has his own "extra zero". From the point of view of the shortage, an inadequately small order may be a mistake, or a confused position that will never need so much, and for the position that was not purchased as a result, there will be a severe shortage.
Solution: regulation and automation of the supply business process. In addition to the obvious gain from reducing the number of errors, and hence the shortage arising from them, automation makes it possible to speed up the execution of many works and bring the solution of many logistics tasks to a qualitatively new level of accuracy.
Lack of money. A common situation is when a successful fast-growing company is constantly experiencing a shortage of money, and therefore products that it cannot buy.
Solution: only clear can help financial planning, at least, strategic decisions about a significant increase in the range or large expenses that will not quickly return to the company. The goal is to prevent gaps in the liquidity of the company, which can lead to a deficit and, as a result, a “growth strain”, which often ends in the bankruptcy of a recently successful company.
Conclusion.
Scarcity is not so difficult to calculate, at least in the first approximation. The effect of its decrease is felt instantly in the company's revenue. Therefore, enterprises that have begun to accurately calculate the deficit and are trying to manage it are already less likely to experience shortages in products and earn more in the same market than their competitors, who treat the deficit as a necessary evil.
However, I don't want this article to leave you with a strong feeling that scarcity is always bad. For example, in the company where I currently work: http://vkusvill.ru/ - a deficit of 6% is initially included in the inventory management model. We have to do this because all our dairy products are completely natural, and their shelf life is usually less than a week, and often 2-3 days in general. In this case, an attempt to ensure consumption at 100% leads to serious write-offs of expensive products in the cost of production, which can reach up to 30% of sales! Therefore, it is cheaper for us to deliberately maintain a deficit at the level of 6% than to constantly write off such volumes at a loss.
Valery Razgulyaev
Reprinting and reposting of the article along with this text, indication of the author, and links to the first
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