Shortages:

exist whenever there is scarcity.
indicate that quantity demanded is greater than quantity supplied.
cannot exist for inferior goods.
cannot exist in a market because the amount sold must equal the amount bought.


Suppy and Demand Graph

At price P3 in the graph above, there is:

a surplus with a tendency for price to fall.
a surplus with a tendency for price to rise.
a shortage with a tendency for price to fall.
a shortage with a tendency for price to rise.
an equilibrium with no tendency for price to change.


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