Shortage
Situation where quantity demanded exceeds quantity supplied at a given price.
Formula
Shortage = Quantity Demanded − Quantity Supplied (at a given price)
Real World
When PlayStation 5 launched in 2020, Sony couldn't produce enough units to meet demand at the £449 price point, creating a shortage that pushed resale prices above £800.
Exam Focus
On diagram questions, show shortage as a horizontal gap between Qd and Qs below equilibrium price — never a vertical gap.
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