Postponement of offers

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The range shift ( english shift supply ) is in economics a change in the supply of certain goods or services , but not to change the total supply in a state leads. The opposite is the shift in demand .

General

Postponements of supply can lead to an increase or decrease in supply. You can meet a single company or entire industries . The entire economy can also be affected if the shift in supply leads to exports or results from imports .

Expressed mathematically, there is a range shift occurs when in the supply function variables change in the derivative of the function are held constant.

causes

The causes of shifts in supply can in particular be income , fashion changes , price changes , new substitute goods , technical progress or advertising . For example, if the income of private households falls , they avoid goods that are subject to a high-price strategy and tend to buy cheap goods . If the fashion changes, for example because fur is hardly in demand for animal welfare reasons, the offer shifts to other substitute clothing. Hermann Heinrich Gossen cited the powder manufacturers and wig makers as the first example of the emergence of unemployment in 1854, when powdering and wig wearing went out of fashion after the French Revolution (1789). Technical progress has led to the fact that the supply of records almost dried up and instead the compact disc rose. Behind Werner Sombart concept of "Surrogierung", the production of hides substitution goods for expensive luxury goods in the form of imitation products from low-priced goods. There was a shift in supply at the expense of the luxury goods industry and in favor of the cheap goods industry. Delays in supply can also be justified by delivery bottlenecks and overproduction .

Finally, supply shifts can lead to a partial relocation of domestic supply abroad, which results in exports. The main cause can be domestic cost advantages .

economic aspects

A postponement of the offer affects the offer function . This shifts to the right when the number of producers increases, the productivity of the factors of production increases and factor costs decrease , subsidies increase or the tax burden decreases. In the opposite case, the supply function shifts to the left.

A postponement of the offer changes the offer of a certain product or service in favor of other products / services. The market- induced shift in supply by companies results from the principle of opportunity, according to which rationally acting economic subjects (especially companies and private households) always strive to maximize the sum of the profits or their benefits from all their activities ( profit maximization , benefit maximization ). Changes in preferences by private households can also be the result of rational considerations of opportunity, especially in the case of everyday goods. In large areas such as luxury goods , however, they are more the result of irrational desires and not the result of measurable needs. In private households, the offer of a new, more attractive or cheaper good leads to a shift in demand at the expense of goods with a lower utility value .

Significant supply shifts can have an impact on the labor market if workers have to be laid off in affected markets, while in beneficiary markets there is a shortage of skilled workers and vacancies . Because of their different qualifications , the workforce cannot easily change, leading to structural unemployment . This structural change is caused by shifts in supply in the country itself.

Individual evidence

  1. ↑ Romy Scholz, Analysis of historical speculative bubbles in the equities and commodities sector , 2015, p. 20
  2. ↑ Hermann Heinrich Gossen, Development of the Laws of Human Intercourse, and the Rules for Human Action flowing from it , 1854/1967, p. 157 ff.
  3. ↑ Werner Sombart, Modern Capitalism , Volume III.2, 1927, pp. 623 ff.
  4. ↑ Lothar Wildmann, Introduction to Economics , Volume 1, 2010, p. 34
  5. ↑ Wolfgang Grundmann / Rudolf Rathner, Banking, Accounting and Control, Economics and Social Studies , 2018, p. 362 f.
  6. ↑ Timm Gudehus, Dynamic Markets: Practice, Strategies and Benefits for Economy and Society , 2007, p. 234
  7. ↑ Timm Gudehus, Dynamic Markets: Practice, Strategies and Benefits for Economy and Society , 2007, p. 234
  8. ↑ Timm Gudehus, Dynamic Markets: Practice, Strategies and Benefits for Economy and Society , 2007, p. 234
  9. ↑ Hans Putnoki / Bodo Hilgers, Great Economists and Their Theories: A Chronological Overview , 2013, p. 52