How is a shortage described in market terms?

A shortage occurs in a market when the quantity demanded by consumers exceeds the quantity supplied by producers at a given price. This imbalance typically leads to competition among buyers, which can drive up prices. When demand is greater than supply, it suggests that consumers are willing to purchase more of the product than is available, highlighting the mismatch between consumer interest and producer capability to meet that demand.

In contrast, when the quantity demanded is lower than the quantity supplied, or when supply equals demand, the market is either oversaturated or in equilibrium, respectively—neither of which describes a shortage. Thus, the correct characterization of a shortage emphasizes the scenario where buyers are left wanting more than what sellers are able to provide.