An Economic Analysis on Equilibrium of Power Supply and Demand

In the paper, we have a brief analysis on the general principles of power supply and demand. When carrying out analysis of change in power supply and demand, we propose the existence of the limits of the short-term power supply and analyze economic reasons for power shortages under the conditions of price rigidity. The paper further analyzes the reasons and methods of price control. Finally, we propose the DSM is an effective way to solve the power shortage, and carrying out economic analysis of the implementation effect of demand side management.