Glossary · Micro · Supply and demand

Shortage (excess demand)

When the price sits below equilibrium, buyers want more than sellers offer and the difference is the shortage. Queues form, and unless something holds the price down it rises until the gap closes.

Also called: excess demand

Related terms

More from supply and demand

Definitions are the start

See the term used, not just defined.

The full course teaches every term in context, with worked examples, interactive graphs and practice questions that remember what you get wrong.