14.4k views
22 votes
How does a market shortage occur

User Ilyes
by
5.1k points

1 Answer

3 votes

Step-by-step explanation:

A Market Shortage occurs when there is excess demand- that is quantity demanded is greater than quantity supplied. ... In response to the demand of the consumers, producers will raise both the price of their product and the quantity they are willing to supply.

User DJphy
by
4.6k points