The Place of Supply and Demand

For ‘bourgeois economists’ and those that follow their line of thinking, it is often repeated that prices, which are what determine value. For Marxists, this identification of ‘price’ with ‘value’ is an error and a collapsing of two ideas together. Under Marxist theory, supply and demand do not explain the base value (in the sense of use or even exchange value), but merely explain the process by which things are sold above or below their value.  A good hypothetical is this: imagine a scenario in which a product had perfect equilibrium of supply and demand. For example, there is a 1:1 ratio of Playstations being manufactured and purchased. What then would explain the value? What would explain why the product is being sold at a particular price? Another good example is digital products. So on video game digital stores like Steam, every video game is essentially limitless. There is zero scarcity of copies of new release games such as Starfield, on Steam. There is infinite supply but there is not infinite demand. Taking supply and demand on its own, the price of all digitally distributed games should very quickly reach a point where their price plummets drastically. Sure, some games do go down in price quickly due to an overestimation of demand, but in a digital space the supply is fundamentally infinite so speaking of ‘supply AND demand’ in this context does not really apply since there is a finite amount of demand.  So why do they still have a money price? Because a lot of socially necessary labour time went into the creation of this product that is represented by a money price.