Which condition occurs when the quantity demanded exceeds the quantity supplied of goods, services, or resources?

Which condition occurs when the quantity demanded exceeds the quantity supplied of goods, services, or resources?

• A. Scarcity
• B. Revenues
• C. Shares
• D. Shortages

Answer: (D)

Shortages arise when people want to buy more than is available at the current price. In a market, if quantity demanded exceeds quantity supplied, there isn’t enough to satisfy all buyers, leading to unmet demand. This gap often causes higher prices or rationing until supply can catch up or demand falls. Scarcity, by contrast, is the broader condition that resources are limited relative to wants, not a specific mismatch at a given price. Revenues refer to money earned from sales, and shares are ownership in a company—neither describes the imbalance between demand and supply.

Shortages arise when people want to buy more than is available at the current price. In a market, if quantity demanded exceeds quantity supplied, there isn’t enough to satisfy all buyers, leading to unmet demand. This gap often causes higher prices or rationing until supply can catch up or demand falls. Scarcity, by contrast, is the broader condition that resources are limited relative to wants, not a specific mismatch at a given price. Revenues refer to money earned from sales, and shares are ownership in a company—neither describes the imbalance between demand and supply.