Question

What does shortage mean in economics

Answer 1

A shortage, in economic terms, is a condition where the quantity demanded is greater than the quantity supplied at the market price. There are three main causes of shortage—increase in demand, decrease in supply, and government intervention.

Step-by-step explanation:

Answer 2

See explanation

Step-by-step explanation:

A shortage is where demand for a product/service is higher than the supply. This is a form of disequilibrium as supply and demand are not equal.