Karli Armstrong & Justin Brumett
Shortage occurs whenever quantity demanded is greater than quantity supply at the market price.
Shortage is not like scarcity, it only exists at certain times.
Three Causes of Shortage:
1. Increase in demand (outward shift in demand curve)
2. Decrease in supply (inward shift in supply curve)
3. Government intervention
There was a shortage in Wii's in 2008
Oil Embargo, 1973–1974
Arab members of the Organization of Petroleum Exporting Countries banned oil trade with the US in retaliation to the US re-supplying Israeli troops.