At a price for which the quantity supplied is less than the quantity demanded, a shortage is experienced, which pushes the price upward toward its equilibrium value.
A shortage exists if the quantity of a good or service demanded exceeds the quantity supplied at the current price. Thus, this causes upward pressure on price.
An increase in demand, all other things unchanged, will cause the equilibrium price to rise and quantity supplied will increase. It is seen that a price below equilibrium creates a shortage.
Hence, when the quantity supplied is less than the quantity demanded, there is a shortage in economy, which pushes the price upward.
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