Best vacation ideas for At this market- clearing price, there is no market force pushing the price to deviate from this equilibrium and there is no shortage or surplus. However, there is often market failure as a result of some intervention restricting the adjustment process. This intervention causes an undesirable market outcome such as a shortage or surplus. For example, the government puts PRICE restrictions in place when it believes that the market price is too high or too low.
Best Vacation Ideas Gallery Photos
Best Vacation Ideas
The government can impose such price restrictions as price ceilings and price floors, which cause shortages and surpluses, respectively. Effective price floors, the minimum legal price, creates a surplus and forces the market to adjust in different ways besides price. Two such examples of price floors are minimum wages and agricultural price supports. Best vacation ideas 2016.