If a price control causes a surplus the market will become inefficient because:
1. The producer will manufacture the same amount of goods as he did previously but the surplus will increase its cost and the goods will not be sold in the market, it will result in the wastage of goods and resources if they are kept in one place for a long time.
2. The surplus will cause an equilibrium in the market in terms of supply and demand.
3. If the goods are not sold in the market for a long time, it will stop the circulation of money.
Meaning of Inefficiency :
It means the lack of ability to achieve a certain goal without wasting energy, resources and time.
Economics is driven by individual choices, especially in capitalist systems: The effect of demand and supply is driven by what people choose to spend their money on, and how they value certain things over others.
For example, if people choose to go to Egypt and not to Tunisia for holidays, this will influence the economies of those two countries differently!
This is indicative of an approach-approach conflict.
An approach-approach conflict occurs when an individual is presented with two or more options, all of which are equally appealing. In the case above, Mark is tempted to ask both Helen and Lorelei to a party, and he cannot seem to make a choice because both options are equally tempting.
A. Monarchy
A monarchy is handed down by royalty/relation
HeY yOu! I bElEvE tHis Is ThE aNsWeR:
World Trade Organization. (WTO)
I Really Hope This Helped You, Good Luck! =)
