The Marketing Equilibrium - Carlsberg Beer

The market equilibrium of Carlsberg beer

Carlsberg beer is the 4^th largest brewery group in the world and the leading beer seller in Russia with about 40 percent market 
share.

When the government increase excise duty on beer, the beer in the market price will goes up and the quantity demanded will reduce until the equilibrium price is reached as well. Therefore, the quantity supplied will decrease too.

 
 

Shortage

Shortage occurs when the market price is below the equilibrium price. It happens when the quantity supplied is less than the quantity demanded.

Example?

When producer A is running out of stock to produce, so producer A raise the price of the product to make profit. Therefore, once the producer raise the product’s price, the product’s quantity demanded will drop until equilibrium is reached. Then, shortage price goes up.

  

 

Surplus

Surplus occurs when the market price is above the equilibrium price. It happens when the quantity supplied is larger than the quantity demanded.

Example?

When a producer B has too much of excess inventory that cannot sell, so they choose to put them on sale. Once the producer lower the product’s price, the product’s quantity demanded will rise until the equilibrium reached. Then, surplus goes down.

 

 

  Resources: http://www.businessdictionary.com/definition/market-equilibrium.html
                    http://staffwww.fullcoll.edu/fchan/Micro/1MKTEQUIL.htm