A shortage occurs when
A) demand is greater than supply.
B) the equilibrium price is too high.
C) quantity demanded exceeds quantity supplied.
D) quantity supplied exceeds quantity demanded.
E) price is above the equilibrium price.

Question

Quizplus · Accepted Answer

A shortage occurs when quantity demanded exceeds quantity supplied, meaning that there are more buyers than sellers and not enough goods or services available to meet the demand. This results in increased competition among consumers, driving up prices until the market reaches equilibrium.

A Shortage Occurs When