Answer:
A shortage refers to a situation where the quantity demanded exceeds the quantity supplied. It indicates that there is an insufficient supply of a particular good or service to meet the demand. This can lead to higher prices and a lack of availability in the market. In contrast, a surplus occurs when the quantity supplied exceeds the quantity demanded, resulting in excess supply and potential downward pressure on prices.
Step-by-step explanation:
A shortage refers to a situation where the quantity demanded exceeds the quantity supplied. It indicates that there is an insufficient supply of a particular good or service to meet the demand. This can lead to higher prices and a lack of availability in the market. In contrast, a surplus occurs when the quantity supplied exceeds the quantity demanded, resulting in excess supply and potential downward pressure on prices.