Market Shortage
Definition
A market shortage occurs when the quantity demanded of a good or service exceeds the quantity supplied, resulting in an imbalance between supply and demand.
Analogy
Imagine you're at a popular concert where there are more people wanting to get in than there are available seats. The shortage happens when there aren't enough seats for everyone who wants to attend.
Related terms
Surplus: A surplus occurs when the quantity supplied of a good or service exceeds the quantity demanded, leading to excess supply.
Equilibrium: Equilibrium is the point where the quantity demanded equals the quantity supplied, resulting in a balance between supply and demand.
Price Ceiling: A price ceiling is a government-imposed maximum price that can be charged for a particular good or service.
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