ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A shortage is a situation in which demand for a product or service exceeds the available supply. When this occurs, the market is said to be in a state of disequilibrium.

Detailed explanation-2: -If demand exceeds supply, prices will rise. The law of supply and demand is based on two other economic laws: the law of supply and the law of demand. The law of supply says that when prices rise, companies see more profit potential and increase the supply of goods and services.

Detailed explanation-3: -Excess Demand: the quantity demanded is greater than the quantity supplied at the given price. This is also called a shortage. Excess Supply: the quantity demanded is less than the quantity supplied at the given price. This is also called a surplus.

Detailed explanation-4: -Answer and Explanation: When the supply is low, and demand is high, the equilibrium price will rise. Market equilibrium exists when demand and supply are in balance.

Detailed explanation-5: -shortage. when the quantity demanded of a good, service, or resource is greater than the quantity supplied. surplus. when the quantity supplied of a good, service, or resource is greater than the quantity demanded.