--- title: "Market Equilibrium, Shortage and Surplus" description: "Where the two curves cross, the amount buyers want matches the amount sellers offer and the market clears. Away from that price a shortage or a surplus builds up, and what disappointed buyers and stuc" canonical: https://lightmysky.com/learn/civics-and-economics/market-equilibrium-shortage-and-surplus-mt_SarFx2o1IM source: https://lightmysky.com/learn/civics-and-economics/market-equilibrium-shortage-and-surplus-mt_SarFx2o1IM.md retrieved: 2026-11-12 --- > **Agent view.** This is the Markdown twin of the page, for tools and assistants. > When to use this site, and the call that answers each job: https://lightmysky.com/agent-instructions.md > API description (OpenAPI 3.1): https://lightmysky.com/openapi.json · Authentication: https://lightmysky.com/auth.md > Pricing: https://lightmysky.com/pricing.md · Catalog: https://lightmysky.com/llms.txt · Full catalog: https://lightmysky.com/llms-full.txt > Every machine-readable file on this domain: https://lightmysky.com/.well-known/ai-catalog.json > Ask for Markdown with `Accept: text/markdown`, a `.md` address, or `?mode=agent`. # Market Equilibrium, Shortage and Surplus Where the two curves cross, the amount buyers want matches the amount sellers offer and the market clears. Away from that price a shortage or a surplus builds up, and what disappointed buyers and stuck sellers do next is the pressure that pushes the price back. Subject: Civics & Economics · Area: Economics · Ages 14 to 16 Page: https://lightmysky.com/learn/civics-and-economics/market-equilibrium-shortage-and-surplus-mt_SarFx2o1IM ## Ready when they can - Find the equilibrium price and quantity on a diagram and check that the two quantities match there - Predict a shortage or a surplus from a price set below or above equilibrium and say who is left disappointed - Explain the pressure that returns the price to equilibrium in terms of what buyers and sellers actually do ## Lesson: Where the curves cross The demand and supply schedules meet where quantity demanded equals quantity supplied. For example, buyers plan to buy 8 loaves and sellers plan to sell 8 at one price. On the curves, this is the crossing: the equilibrium price and quantity. The market clears, with no shortage or surplus. This standard model holds other influences fixed. **Example.** In the standard model, demand slopes down and supply slopes up. Above equilibrium, quantity supplied exceeds quantity demanded, leaving a surplus. Below equilibrium, quantity demanded exceeds quantity supplied, creating a shortage. Some buyers cannot buy what they want at that price. Compare quantities, not the number of buyers and sellers: one seller can offer many loaves. If prices can adjust, a surplus gives sellers a reason to cut prices to clear stock. During a shortage, buyers may bid more and sellers may raise prices. These pressures move price toward equilibrium. A fast sellout alone does not prove a shortage. You also need buyers who are willing and able to pay the stated price but cannot get tickets. A price ceiling is a legal maximum. It is binding below equilibrium and creates a shortage in this model. A price floor is a legal minimum. It is binding above equilibrium and creates a surplus. A ceiling above equilibrium or a floor below it leaves the equilibrium price available. **Recap.** At equilibrium, planned quantities match. Shortages and surpluses put pressure on flexible prices. ## Practice 8 questions on this page, each with its working shown. ## Needs first - [Demand and Supply as Curves](https://lightmysky.com/learn/civics-and-economics/demand-and-supply-as-curves-mt_FyYrlvzXct) ## Opens up - [Shifts in Demand and Supply](https://lightmysky.com/learn/civics-and-economics/shifts-in-demand-and-supply-mt_z7FcJ9BAz3)