Shortages occur when prices are held below the market price, causing the quantity demanded to exceed the quantity supplied. This is a result of price:

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Shortages occur due to price ceilings, which are government-imposed limits on how high prices can be set. When the ceiling is set below the market price, the quantity demanded exceeds the quantity supplied, leading to a shortage. Price floors, on the other hand, lead to surpluses as the price is kept above the market equilibrium price. Gouging and competition are not related to shortages in this context.

Shortages Occur When Prices Are Held Below the Market Price