Bringing Supply and Demand Together

At a price less than the equilibrium price, a shortage, or excess quantity demanded, would exist.

• At a price less than the equilibrium price, a shortage, or excess quantity demanded, would exist.
• Buyers would be willing to buy more than sellers would be willing to sell.

Frustrated buyers would compete for the existing supply, causing the price to rise, and producers to increase the quantity supplied.

• Frustrated buyers would compete for the existing supply, causing the price to rise, and producers to increase the quantity supplied.
• This would decrease the quantity demanded, eliminate the shortage, and return the market to equilibrium.

• Shortages

• The Market for Super Bowl Tickets