What Is a Soft Market?

Weak market refers to a market situation where there is a backlog of commodities and difficult sales. Weakness in the market is likely to coexist with the "shortage economy". Sometimes sales are difficult and inventory is backlogged, but from a macro perspective, the basic situation of aggregate demand over aggregate supply still exists, and strong demand and short-term demand may coexist. The reasons for the market weakness are: the blind development of production caused the excess of certain products; the consumption level is lower than the development of production; the irrational consumption structure or the growth of consumption lags behind the growth of production; Including sectoral structure, intra-sectoral structure and regional structure imbalance; the price system can not guarantee the normal development of balanced production, and so on. Different countries and different historical periods cause different reasons for weak markets, so the consequences of weak markets and the ways to solve them are also different. ^[1]

Weak market

Right!

Weak market refers to a market situation where there is a backlog of commodities and difficult sales. Weakness in the market is likely to coexist with the "shortage economy". Sometimes sales are difficult and inventory is backlogged, but from a macro perspective, the basic situation of aggregate demand over aggregate supply still exists, and strong demand and short-term demand may coexist. The reasons for the market weakness are: the blind development of production caused the excess of certain products; the level of consumption is lower than the development of production; the irrational consumption structure or the growth of consumption lags behind the growth of production; Including sectoral structure, intra-sectoral structure and regional structure imbalance; the price system can not guarantee the normal development of balanced production, and so on. Different countries and different historical periods cause different reasons for weak markets, so the consequences of weak markets and the ways to solve them are also different. ^[1]

Market weakness refers to the temporary saturation of the market.

Because of the law of value, supply and demand are constantly changing (increasing demand-rising prices-rising supply-falling prices, then falling demand-falling prices-falling supply, and then repeating the previous step for price cycles)

A weak market means that the market is saturated and supply exceeds demand.