Asked by
robyn forbes
on Nov 17, 2024
Verified
When quantity demanded exceeds quantity supplied at the current market price, the market has a shortage, and market price will likely rise in the future to eliminate the shortage.
Quantity Demanded
The specific amount of a good or service consumers are willing to buy at a given price point, holding all else constant.
Quantity Supplied
The total amount of a good that producers are willing to sell at a given price over a specific time period.
Shortage
A situation in which demand for a good or service exceeds the available supply at a specific price.
- Understand the linkage between market equilibrium and the phenomena of surplus and shortage.
- Comprehend the process by which market systems naturally adjust to achieve equilibrium.
Verified Answer
CL
Learning Objectives
- Understand the linkage between market equilibrium and the phenomena of surplus and shortage.
- Comprehend the process by which market systems naturally adjust to achieve equilibrium.
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