In competitive markets a surplus or shortage will:

Name: In competitive markets a surplus or shortage will:
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Question

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In competitive markets, a surplus or shortage will cause buyer and seller reactions which tend to eliminate the surplus or shortage. Buyers will demand more of the surplus, and sellers will offer less of the product causing the price to decrease, and vice versa for a shortage. This process will continue until equilibrium is reached where the quantity demanded is equal to the quantity supplied.

In Competitive Markets a Surplus or Shortage Will