Definition
- Shortage
- A shortage, also called excess demand, is when the quantity demanded exceeds the quantity supplied at the existing price.
Example
Can you think of an example of shortage?
A new games console goes on sale at £400. In the first week 50,000 people want one but only 20,000 are in the shops, so the shortage is 30,000 and resale prices climb.
Learn it properly: the module
Also in: Scarcity and choice