8) In a perfectly competitive market, situations of surplus or shortage of a good __ A) self-correct due to the competitive nature of the market B) exist until the government or any ruling authority intervenes C) can exist simultaneously D) are permanent phenomena

) self-correct due to the competitive nature of the market<br /><br />In a perfectly competitive market, situations of surplus or shortage of a good self-correct due to the competitive nature of the market. When there is a surplus, the price will decrease as suppliers compete to sell their goods, eventually leading to equilibrium. Conversely, when there is a shortage, the price will increase as demand exceeds supply, again leading to equilibrium. This self-correction mechanism is a fundamental characteristic of perfect competition.