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A shortage occurs whenever quantity demanded is greater than quantity supply at the market price. More people are willing and able to buy the good at the curren
by jshen 12y ago
A shortage occurs whenever quantity demanded is greater than quantity supply at the market price. More people are willing and able to buy the good at the current price than what is currently available. When a shortage exists, the market is in disequilibrium.
Over time, the good will be replenished and the shortage condition resolved.
- defen 12y ago> More people are willing and able to buy the good at the current price than what is currently available. When a shortage exists, the market is in disequilibrium. My argument was that in this situation the price should rise, reducing demand.
- jshen 12y agoSure, but that doesn't happen instantaneously, which is what allows for a shortage. I've seen no good data on this issue either way, but from my anecdotal experience, salaries have been rising for a while now.