4 ms·
> 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 disequilibriu
by 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.