Episodic crises appear to highlight the value of cooperation and of supply chain redundancy or slack, rather than the efficiency of perfect competition. This suggests a more nuanced perspective on market power than the largely detrimental perception implied by dominant economic theory., In this unit, we describe how the labour market works and why even in equilibrium, the supply of labour (number of people seeking jobs) exceeds the demand for labour (number of jobs offered). Those without work in this situation are termed the involuntary unemployed unemployment, involuntary The state of being out of work, but preferring to have a job at the wages and working conditions that , Equilibrium prices typically change for most goods and services because factors affecting supply and demand always change. Free, competitive markets tend to push prices toward market equilibrium., Study with Quizlet and memorize flashcards containing terms like How does the American economy incorporate the main characteristics of a free enterprise economy, How do private property rights serve as an incentive in a free enterprise economy, How does competition benefit consumers and more., We would like to show you a description here but the site won’t allow us., The point at which the two curves intersect represents the market-clearing price—the price at which demand and supply are the same. Prices can change for many reasons (technology, consumer preference, weather conditions). The relationship between the supply and demand for a good (or service) and changes in price is called elasticity..