A shortage is:

Question

A shortage is:

Quizplus · Accepted Answer

A shortage occurs when the quantity of a good or service that producers are willing to sell is less than the quantity consumers want to buy. This results in higher prices as consumers compete for limited supply. Option B is incorrect because downward pressure on price would result from a surplus, not a shortage. Option C is incorrect because if there is too much of a good produced, that would result in a surplus, not a shortage. Option D is incorrect because it describes a surplus, not a shortage.

A Shortage Is