Surplus and Shortage (Consumer and Producer) - Explained
What is a Surplus and Shortage of Goods?
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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.
- Total Utility (Economics)
- Efficiency Principle
- Indifference Curve
- Time Preference Theory of Interest
- Diminishing Marginal Utility
- Sunk Costs
- Production Possibilities Frontier
- Law of Diminishing Returns
- Economic Efficiency
- Efficiency Theory
- Productive Efficiency
- Capacity Utilization Rate
- Pareto Efficient
- Comparative Advantage
- Criticisms of the Economic Approach
- Behavioral Economics
- Normative Economics
- Positive Economics
- Invisible Hand
- Sunk cost