[This is part of the series: The Complete Guide To Economics 101.]
What is an economic shortage?
An Economic Shortage is an imbalance of supply and demand where quantity demanded is greater than quantity supplied.
It is important to remember, shortages are always caused by price ceilings.
An example of a shortage might be a crowded beach where there is nowhere to sit. There is a shortage of “beach” for people to enjoy. In the case of a public beach, it is generally because there is no price involved.
Graphically, a price ceiling looks like this: