Lead:

As we all know, Guangzhou's consumption level has always been much higher than Beijing's. It stands to reason that Guangzhou, which has a higher consumption level than Beijing, should also be more expensive than Beijing in terms of labor prices and food raw material prices. So, why is Guangzhou's catering industry cheaper than Beijing's? From an economic point of view, this is mainly due to the relatively mature and large-scale market competition system of Guangzhou's catering industry.

Guangzhou is known as a "food paradise". There are countless restaurants of all sizes, such as Guangzhou Restaurant, Tao Tao Ju, Lianxiang Building, Panxi Restaurant, etc., and the small ones have "Yinji", "Wu Zhanji", "Nanxin" and so on. From Wagyu beef offal radish, double skin milk, clear water chestnut cake to cheong fun, shrimp dumplings, wonton and more.

People often say that "food in Guangzhou", this is not only because of the delicious food in Guangzhou, rich in variety, but also for a more important reason, that is, the food price in Guangzhou is much cheaper than that of many cities, which is really "good quality and low price"! As long as it comes to eating, people who have been to Guangzhou will give a thumbs up to the food in Guangzhou.

As we all know, Guangzhou's consumption level has always been much higher than Beijing's. It stands to reason that Guangzhou, which has a higher consumption level than Beijing, should also be more expensive than Beijing in terms of labor prices and food raw material prices. So, why is Guangzhou's catering industry cheaper than Beijing's? From an economic point of view, this is mainly due to the relatively mature and large-scale market competition system of Guangzhou's catering industry.

To give an example, why is it because of the mature market competition system that Guangzhou's delicious food is cheap and cheap: Wagyu beef offal is one of Guangzhou's unique porridge products. For example, there are 4 people A, B, C, and D who all have the desire to buy. However, due to their eating habits, spending power, and hunger levels, they are willing to pay different prices. Suppose A is willing to pay $70; B is willing to pay 60 yuan; C is willing to pay 30 yuan; Ding is willing to pay 20 yuan.

At the same time, there are four shops A, B, C, and D that sell wagami offal, and each of them can only provide 3 servings of wagami offal due to production capacity. However, due to the differences in their store rent, workers' wages, production technology, etc., the lowest price they are willing to sell is A: 60 yuan, B: 50 yuan, C: 40 yuan, and D: 30 yuan.

Let's analyze what price will be traded in the market. If it was traded at a price of 60 yuan per serving, it was clear that the four stores A, B, C, and D were willing to sell all the porridge. As a result, there are 12 servings of porridge in the market. Among the four people A, B, C, and D, only two people, A and B, are willing to buy. As a result, there will be an oversupply. In the same way, if the price is set at 50 yuan, there will also be an oversupply.

In a free and competitive market, when there is an oversupply, the price of goods will fall. If the market price is set at 30 yuan, then only D can provide 3 servings of porridge at this time, and there are 3 people in the market who are willing to buy it at this price. As a result, supply and demand in the market are in balance. This is the price at which boat porridge should be sold in this market. However, if the price of boat porridge drops to 20 yuan at this time, then no merchant is willing to provide it, so the price will rise to the balance point of 30 yuan.

From this we can clearly see that in a free competitive market, there seems to be an organizer who regulates the market price so that the demand and supply of the market are in balance at that price level. Through the analysis, we can see that it is this kind of free competition market that brings consumers good quality and cheap food. So, can this kind of competitive and free market bring benefits to merchants?

Let's assume that the price of boat porridge is now 30 yuan. In this case, A saved 40 yuan and B saved 30 yuan. Consumers saved a total of $50. The 50 yuan is called "consumer surplus" in economics, and at the price of 30 yuan, store B earned 20 yuan more than the original, and store A earned 30 yuan more than the original. Stores A and B earned a total of 50 yuan more than the original. This part is what economists call the "producer surplus".

If the consumer surplus is also regarded as the social surplus, then we say that the total 100 yuan is the most price that can be saved by the society in all cases. This is what we often say in economics, while maximizing individual utility, we also realize social benefits.

It is precisely because of the highly developed catering industry in Guangzhou that the catering market in Guangzhou has formed a market system of free competition, under which merchants can continue to provide consumers with high-quality and inexpensive food.

Therefore, a mature and comprehensive market competition system can not only bring many benefits to consumers, but also to businesses.