Respuesta :
if there is a shortage in market, both buyers and sellers has to suffer, because buyers has to pay more price for that item, and at the same time sellers profit get decreased due to insufficient supply
When there is shortage, the demand for a good exceeds the supply. This is because price is below the equilibrium price.
What is a shortage?
A shortage occurs when there is a scarcity of an item in the market. This is because the price of the item is below the equilibrium price. This would lead suppliers to reduce supply. When supply is reduced, price would rise until equilibrium is restored.
Thus, a shortage increases equilibrium price and reduces equilibrium quantity.
To learn more about shortages, please check: https://brainly.com/question/26668090
