Asked by Teyanna Meshae on Apr 29, 2024
Verified
A shortage occurs when there is an excess supply in a market.
Shortage
A situation where the demand for a product exceeds its supply in a market, often leading to increased prices.
Excess Supply
A market condition where the quantity of a good or service supplied exceeds the quantity demanded at a particular price, often leading to price decreases.
- Understand the outcomes of establishing prices higher or lower than the equilibrium price, covering both excesses and deficiencies.
Verified Answer
JB
Jenna BosserdetMay 01, 2024
Final Answer :
False
Explanation :
A shortage occurs when demand exceeds supply, not when there is an excess supply.
Learning Objectives
- Understand the outcomes of establishing prices higher or lower than the equilibrium price, covering both excesses and deficiencies.