In any industry there must be a balance between goods producedand goods sold (Ca

In any industry there must be a balance between goods producedand goods sold (Case Fair and Oster 2009). Perfectly competitiveindustries have little means to control the prices for theirproducts. For example farmers across the country grow and sellgrain annually. One farmer cannot decide that he wants to sell hisgain for $8.50/bushell when the market price is $6.50. This farmerwould drive consumers to purchase grain from others. Adjustmentsmust be made wherever possible to give suppliers in a perfectlycompetitive industry an edge over competition. However the pricecannot be the adjustment factor. As a result suppliers must findways to become more efficient in producing their products. Whensuppliers can efficiently produce enough of a product to satisfythe demand without producing more they will have created anequilibrium. If suppliers are not able to meet the demand priceswill rise. Conversely if suppliers over-produce the rate ofdemand prices will fall.