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Shortage/Surplus
A shortage occurs when demand exceeds supply for a product or service, whereas a surplus occurs when supply exceeds demand, leading to downward pressure on prices.
Demand Equation
A mathematical expression that relates the quantity of a good that consumers are willing to buy to the good's price and other variables such as income and the price of related goods.
Price Floor
A government-imposed minimum price set above the equilibrium price, preventing market prices from falling below it.
Shortage/Surplus
Conditions where the quantity demanded is greater than the quantity supplied (shortage) or the quantity supplied is greater than the quantity demanded (surplus) in a market.
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