Another name for a shortage is
A) excess quantity supplied.
B) excess quantity demanded.
C) equilibrium.
D) market clearing.

Question

Quizplus · Accepted Answer

A shortage occurs when the quantity demanded of a good or service exceeds the quantity supplied at the current market price. This is also referred to as an "excess quantity demanded." Option A ("excess quantity supplied") describes a situation in which the quantity supplied exceeds the quantity demanded, which is the opposite of a shortage. Option C ("equilibrium") refers to a situation where the quantity demanded and quantity supplied are equal, so there is no shortage or surplus. Option D ("market clearing") refers to the process by which a market reaches equilibrium, not to a shortage specifically.

Another Name for a Shortage Is