ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A shortage exists if the quantity of a good or service demanded exceeds the quantity supplied at the current price; it causes upward pressure on price. An increase in demand, all other things unchanged, will cause the equilibrium price to rise; quantity supplied will increase.

Detailed explanation-2: -A shortage is a condition where the quantity demanded is greater than the quantity supplied at the market price. There are three main causes of shortage-increase in demand, decrease in supply, and government intervention.

Detailed explanation-3: -Economic shortages are situations where unequal market supply and demand prevail. An increase in demand, a decrease in supply, and government interventions are reasons for the economy’s shortages of goods and services. Examples of shortages include food, water, power, and labor.

Detailed explanation-4: -In economic terms, shortages occur when the quantity demanded exceeds the quantity supplied. To be at market equilibrium, the quantity supplied must match the quantity demanded, so when this is not the case, it either results in a surplus or a shortage.

Detailed explanation-5: -Shortage Economics A shortage is created when the demand for a product is greater than the supply of that product. Typically, shortages are temporary and can be fixed by replenishing the supply of goods and products.