A shortage exists
A) in equilibrium.
B) when quantity supplied is greater than quantity demanded.
C) when quantity supplied is less than quantity demanded.
D) at the market clearing price.

Question

Quizplus · Accepted Answer

A shortage occurs when the quantity demanded is greater than the quantity supplied, meaning there are not enough goods or services to meet consumer demand. This typically results in an increase in price as sellers are able to charge more for the limited supply.

A Shortage Exists