In which circumstance would a shoe store reduce the price of shoes? equilibrium Surplus Shortage Specialization

## Step 1<br />The question is asking about the circumstances under which a shoe store would reduce the price of its shoes. The options provided are equilibrium, surplus, shortage, and specialization.<br /><br />## Step 2<br />Equilibrium refers to a state where supply equals demand. In this state, there is no excess supply or demand, and the price is stable.<br /><br />## Step 3<br />Surplus refers to a situation where the supply of a product exceeds its demand. In this situation, the store would not reduce the price of the shoes, but rather increase it to encourage more customers to buy.<br /><br />## Step 4<br />Shortage refers to a situation where the demand for a product exceeds its supply. In this situation, the store would reduce the price of the shoes to encourage more customers to buy and to clear out the excess inventory.<br /><br />## Step 5<br />Specialization refers to a situation where a store focuses on producing a specific type of product. This does not directly relate to the price of the shoes.