In market terms, which condition occurs when demand exceeds supply?

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Multiple Choice

In market terms, which condition occurs when demand exceeds supply?

Explanation:
When demand is greater than what's available, a shortage occurs in the market. There aren’t enough goods to meet all buyers’ desires, so competition pushes prices up and producers may increase output to balance things. The phrase that describes this situation is “demand exceeds supply,” making it the correct choice. The other ideas describe different outcomes: a surplus happens when supply exceeds demand and prices tend to fall, and the note about shoppers’ time isn’t a market outcome.

When demand is greater than what's available, a shortage occurs in the market. There aren’t enough goods to meet all buyers’ desires, so competition pushes prices up and producers may increase output to balance things. The phrase that describes this situation is “demand exceeds supply,” making it the correct choice. The other ideas describe different outcomes: a surplus happens when supply exceeds demand and prices tend to fall, and the note about shoppers’ time isn’t a market outcome.

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