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I have a basic question

What are the different means/mechanisms available to address supply-demand imbalance?

The answers that come to my mind are :

  1. Using pricing (when demand > supply)
  2. Using rationing (when demand > supply)
  3. Preempting the imbalance by gathering precise demand information (when supply > demand)

Are there any other means available to address situations when demand > supply and supply > demand?

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  • $\begingroup$ The mechanism to address the supply-demand imbalance would have to depend on the reason why such imbalance existed in the first place. So, why do you there should be an imbalance to begin with? $\endgroup$ – Herr K. Feb 12 '19 at 18:26
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In order to cover the supply and demand imbalance following methods can be used in addition to the ones mentioned by you:

TO DEAL WITH THE IMBALANCE WHEN DEMAND > SUPPLY:

  1. In the long-run period, Innovation of substitute goods
  2. First come, first-served basis
  3. Innovation of better production techniques which would increase the supply
  4. Commodities are sold only to the frequent costumers of the producers
  5. Better transportation and communication systems on the producers part to increase the supply and to meet excess demand.

TO DEAL WITH THE IMBALANCE WHEN DEMAND < SUPPLY

  1. Decrease in the prices of complementary goods.
  2. Better credit facilities (ex: lowering the bank rates)
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