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Which describes a situation in which a shortage occurs?

a) Surplus of goods
b) Excess demand
c) Equilibrium
d) Perfect competition

1 Answer

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Final answer:

A shortage occurs when the quantity demanded exceeds the quantity supplied at the existing price.

Step-by-step explanation:

A shortage occurs when the quantity demanded exceeds the quantity supplied at the existing price. This is also known as excess demand. It can happen when there is a high demand for a certain product or service but not enough supply to meet that demand. For example, during a popular music festival, there may be a shortage of tickets because there is more demand from people wanting to attend than there are tickets available.

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