Ridding (economic theory)

Ridding, in economic theory, refers to a situation where suppliers or producers remove their excess or inefficient inventory from the market, often in response to price changes or market conditions. This process helps restore balance between supply and demand by reducing surpluses, which can otherwise depress prices or distort market signals. Essentially, ridding ensures that resources are better allocated by eliminating surplus stock, leading to more stable prices and more efficient markets. It reflects the natural adjustment mechanism in economies where businesses respond to market indicators to optimize their inventories and operations.