Best Vacation Ideas

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.

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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.

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