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In economics, a shortage is defined as an economic condition whereby demand exceeds supply at the prevailing price. The opposite condition is called a surplus.
A shortage should not be confused with scarcity. Scarcity, the notion that all goods exist in limited supply, is considered a fundamental law of economics. A shortage, however, exists when a market can not be established or when a market is constrained in such a way that sellers can not provide enough of a good or service to satisfy all buyers who are willing to pay the prevailing price.
Well functioning markets require trust, liquidity, rapid settlement, and free access. So-called perfect markets have the following characteristics:
* Perfect information exchange among potential buyers and sellers: All parties understand the terms of sale and the characteristics of the products and services offered for sale. * Frictionless commerce. There are no costs of processing and settling transactions. Buyers and sellers have a common currency; terms of trade are established by well-defined contracts; buyers and sellers honor their contracts; markets have sufficient hours of operation and clear quickly. * All buyers and all sellers have equal and unfettered access to markets Free markets are ones that satisfy the above principles and also allow prices to fluctuate in such a way that buyers and sellers can find a common price at which all goods and services offered for sale are exchanged (that is, markets "clear"). According to the theory of free markets, a shortage will occur when a price is fixed at a level below that which would clear the market.
What else can I help you with?
What is a word that means 'not enough'?
insufficient
What are requisitions?
"Requisition" is related to the word "require" and means "things which are required" or "a request or demand for things which are required."
What does the word equip mean?
Equip is a verb that means, to supply with items that are necessary for a particular purpose.
Which word is not a synonym of the others nourish feed supply inculcate?
The word "inculcate" means to teach or instill. The others mean provide for or sustain.
What is the origin of the word 'requisition'?
The word requisition dates back to the 15th century. It comes from late Middle English word requisicion. It means to formally demand or request something.
Sentence with the word ample?
The word ample is an adjective and means more than enough. A sentence with this word is: There was an ample supply of food and drinks for the wedding guests.
What sentence can you write with free enterprise?
Another word for free enterprise is free market and it means a business govorned by the laws of supply and demand and it is restrained by the government.
Why are prices generally higher for products that are scarce?
One word: Demand. Do some research on the "Law of Supply and Demand".
What is the word for not enough to meet demand.?
shortage scarcity
What is a ample sleep?
The word "sufficient" means enough. The word "ample" means more than enough.
What word means to supply again?
Resupply.
What is a 5 letter word that means to demand?
exact
What word means never enough?
Not good enough
Can you give a sentence using the word inverse?
Sodium and potassium have an inverse relationship. In an inverse relationship, two things are opposite and react to each other.
What are the Factors that influence the level of money supply?
ms word chart with gridlines
What is a 7 letter word that means to supply?
provide
What is a five letter word that starts with E for supply?
This might be the word "extra." If you have a supply of something, often that means you have extra.
