PRESENTATION OUTLINE
Definition:
Situation in which quantity demanded is greater than quantity supplied.
The quantity available or supplied in a market falls short of the quantity demanded or required at a given time.
Shortage is also known as excess demand.
A shortage occurs when more people want to buy a good at the current market price than what is available.
Causes of shortage: Increase in demand,Decrease in supply and Government intervention.
Example:
A customer may see an empty shelf on Tuesday, but returns on Friday same shelf overflowing.
