Surplus and Shortage (Consumer and Producer) - Explained
What is a Surplus and Shortage of Goods?
Written by Jason Gordon
Updated at March 26th, 2023
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What is an Economic Surplus of Goods?
A excess or surplus of goods in the market arises when producers produce more of a good or service that consumers want or need at a given price.
What is an Economic Shortage of Goods?
A shortage, in contrast, arises when consumers demand (need or want and are able to purchase) more of a good or service that supplied by producer sin the market.
Back to:ECONOMIC ANALYSIS & MONETARY POLICY
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- Enlightened Self-Interest
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- Total Utility (Economics)
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- Expected Utility
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- Positional Goods
- Utilitarianism
- Indifference Curve
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- Incentives
- Marginal Benefit
- Diminishing Marginal Utility
- Sunk Costs
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- Law of Diminishing Returns
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- Efficiency Theory
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- Positive Economics
- Invisible Hand
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