Questions: A market shortage is Multiple Choice the amount by which the quantity demanded exceeds the quantity supplied at a given price. the result of a price floor a situation in which producers cannot sell all the goods and services that they are willing and otherwise able to sell. the amount by which the cost of production exceeds the price of a good.

The answer is the first one: the amount by which the quantity demanded exceeds the quantity supplied at a given price.

Explanation for each option:

1. The amount by which the quantity demanded exceeds the quantity supplied at a given price.

   • This is the correct definition of a market shortage. A shortage occurs when there is more demand for a product than there is supply available at a particular price, leading to unmet consumer demand.

2. The result of a price floor.

   • This is incorrect. A price floor is a minimum price set by the government above the equilibrium price, which can lead to a surplus, not a shortage, because it results in a higher quantity supplied than demanded.

3. A situation in which producers cannot sell all the goods and services that they are willing and otherwise able to sell.

   • This describes a surplus, not a shortage. A surplus occurs when the quantity supplied exceeds the quantity demanded, often due to prices being set too high.

4. The amount by which the cost of production exceeds the price of a good.

   • This is incorrect. This situation describes a loss for producers, not a market shortage. A shortage is related to the relationship between supply and demand, not production costs.

In summary, a market shortage is characterized by demand exceeding supply at a given price, leading to unmet consumer demand.