Shortage

A shortage is a situation in which demand for a product or service exceeds the available supply. Shortages can occur in any market, but are most common in markets with price ceilings, such as rent control or price controls on certain goods. Shortages can also occur in markets with price floors, such as minimum wage laws. In these cases, the price floor is set above the equilibrium price, resulting in a shortage of the good or service.

History of Shortage

The concept of shortage has been around since the dawn of economics. In the early days of economics, shortages were seen as a natural consequence of market forces. As demand for a good or service increased, the price of the good or service would rise, resulting in a shortage. This was seen as a natural consequence of the market, and was accepted as part of the economic system.

In the modern era, however, shortages are seen as a problem that needs to be addressed. Governments have implemented various policies to address shortages, such as price controls, rent control, and minimum wage laws. These policies are designed to ensure that the price of a good or service does not exceed the equilibrium price, thus avoiding shortages.

Comparisons

Summary

In conclusion, a shortage is a situation in which demand for a product or service exceeds the available supply. Shortages can occur in any market, but are most common in markets with price ceilings, such as rent control or price controls on certain goods. Shortages can also occur in markets with price floors, such as minimum wage laws. For more information on shortages, please visit the websites of the Federal Reserve Bank of St. Louis, the U.S. Bureau of Labor Statistics, and the U.S. Department of Labor.

See Also

• Price Ceiling
• Price Floor
• Equilibrium Price
• Rent Control
• Price Controls
• Minimum Wage Laws
• Supply and Demand
• Market Forces
• Economic System
• Government Policies

Do you like the post? Share it now: