The Midwest was recently blanketed with a foot or more of snow. As people demanded snow removal, the price homeowners were willing to pay increased. In response to the price increase, any kid with a snow shovel entered the market as a snow remover. As the number of shovelers increased and the snow gradually disappeared, many exited the market after taking short-run profits. This is perfect competition.
About the Author: Mike Fladien is a high school Economics and Law teacher in Muscatine, Iowa. He has been called the EconHacker because he has a talent for explaining Economics concepts in a simple language that anyone can understand.