When a commodity is supplied on the market in grater quantity – compared to the required at that particular moment, – there is a surplus of it. According to the intrinsic value of particular commodities in market equilibrium, they are exchangeable for each other in certain proportions. Yet as a result of every exchange, a good is leaving the market and passing to the sphere of productive consumption, so by the separate productions of goods the quantitative relations among the products are altered. Certain economic goods thus are in surplus quantity, which is temporarily not a part of the intrinsic value equation and entails some provisional market equilibrium.
Historical Backdrop
• THOMAS MUN England’s Treasure by Foreign Trade: over balance in value.
• JAMES MILL Elements of Political Economy: superabundant supply.
• SISMONDE DE SISMONDI Political Economy and the Philosophy of Government: distortion between production and consumption.
• JOHN STUART MILL Principles of Political Economy: deficiency of demand.