PRICE MECHANISM
Market shortage is the imbalance where demand exceeds supply.
The price mechanism is able to correct surplus or shortage without shifting demand or supply. Market equilibrium, the market condition where demand and supply is equal, determines the equilibrium price. The equilibrium price helps in identifying the price floor (the lowest possible price) and price ceiling (the highest possible price).
Market shortage occurs because of the price ceiling set below the equilibrium price. To achieve a surplus, it should be adjusted to price floor set above the equilibrium price.