In a perfectly competitive market,situations of surplus or shortage of a good ________.

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In a perfectly competitive market, situations of surplus or shortage of a good are self-correcting due to the competitive nature of the market. If there is a surplus of a good, the price will decrease until the quantity demanded equals the quantity supplied. If there is a shortage of a good, the price will increase until the quantity demanded equals the quantity supplied. This is because there are many buyers and sellers in a perfectly competitive market, each with little market power. Therefore, no individual buyer or seller can affect the price or quantity of the good sold.

In a Perfectly Competitive Market,situations of Surplus or Shortage of a Good