Markets tend toward equilibrium and, as a result, will tend to eliminate shortages and surpluses. Why?

Macroeconomics
13th Edition
ISBN:9781337617390
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter3: Supply And Demand: Theory
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Explain Each your answer with the clear and supportive explaining  idea with creative work

1. Markets tend toward equilibrium and, as a result, will tend to eliminate shortages and surpluses. Why?

 

2.  Explain the impact of:

A price floor for milk set above the equilibrium price.

A price ceiling for milk set below the equilibrium price.

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