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    Describe what happens to a market when Supply and Demand are not in equilibrium. List two instances from your personal experience when you observed the "disequilibria" of supply and demand in a market, and what caused the market to come to equilibrium, if indeed it did.

    Make sure you fully describe the economic condition stated in this problem from a theoretical and practical viewpoint. Fully support your statement with references.

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    Shortages and surpluses occur when there are disequilibria. Either demand exceeds supply (shortage) or supply exceeds demand (surplus). In general, this result when prices do not adjust to ...

    Solution Summary

    Shortages and surpluses are highlighted.