ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Excess Demand: the quantity demanded is greater than the quantity supplied at the given price. This is also called a shortage.

Detailed explanation-2: -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. Usually, this condition is temporary as the product will be replenished and the market regains equilibrium.

Detailed explanation-3: -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.

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: -Examples of shortages include food, water, power, and labor. Demand or supply changes can occur for various reasons; not all are related to a price change. Scarcity and shortage are two different, and certain economic shortage characteristics make them stand apart.