--%>

Definition of shortage

Definition of shortage: It is a condition in which quantity demanded is more than the quantity supplied.

The sellers will respond to the shortage by increasing the price of the good till the market reaches the equilibrium.

   Related Questions in Macroeconomics

  • Q : Definition of equilibrium price

    Definition of equilibrium price: It is the price which balances quantity demanded and quantity supplied. The equilibrium price is frequently termed as the "market-clearing" price since both buyers and sellers are p

  • Q : Stock option price-Strike price-Put and

    What do you mean by the following terms: a stock option price, strike price and what are a put and a call?What is the merits or demerits of purchasing stock options over stocks? What function do Mutual Funds execute with Stock Market

  • Q : Self consumption-Value of output

    Illustrate whether output generated for self consumption is comprised or not comprised in the value of output? Answer: The output generated for self consumption is

  • Q : National disposable income What must be

    What must be added to NNPMP to obtain net national disposable income? Answer: The Net current transfers from abroad must be added to NNPMP to get national disposabl

  • Q : Principles of macroeconomics What are

    What are the “powers of the Federal Reserve

  • Q : Principles of macroeconomics what are

    what are the four factor of economic growth

  • Q : Fiscal and monetary policies in

    Explain the impact of changes in fiscal and monetary policies in curtailing inflation?

  • Q : Problem on law of diminishing marginal

    According to law of diminishing marginal utility, the longer that Lee and Chris kiss: (i) the less invested each will be in ongoing this relationship. (ii) The nearer they are to reaching their joined production possibilities frontier. (iii) The more

  • Q : Law of equal marginal advantage The law

    The law of equivalent marginal advantage is violated when people: (1) think about paying a higher price that ensures better quality. (2) elect a general as president while war clouds threaten. (3) fail to allocate similar resources within equally valu

  • Q : Project Include graphs and should be 15

    Include graphs and should be 15 pages long