Economics Supply And Demand Questions Medium
When there is a shortage in the market, the price tends to increase while the quantity available decreases. This occurs because the demand for a particular good or service exceeds the available supply. As a result, consumers are willing to pay higher prices to secure the limited quantity available, leading to an upward pressure on prices. Additionally, suppliers may ration the limited supply among consumers, resulting in a decrease in the quantity available in the market. Overall, a shortage creates a situation where prices rise and the quantity available decreases.