---
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: 2026-09-12
---

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# 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

At one special price the two lists agree: buyers want 6 loaves and sellers offer 6, so the shelf clears. That crossing is the equilibrium, with its equilibrium price and equilibrium quantity. Name the crossing first, then check above and below it.

**Example.** Set the price above the crossing and sellers offer more than buyers take, so loaves pile up in a surplus and sellers sit stuck. Set it below and buyers chase more than sellers bring, so the shelf empties in a shortage and buyers leave empty-handed.

Markets push back toward the crossing through what people actually do. In a surplus, sellers cut the price to clear stock, and in a shortage, buyers bid the price up. A concert that sells out in four minutes sat below its crossing, since eager buyers outnumbered the seats.

**Tip.** Caps breed shortages and floors breed surpluses. A ceiling holds price down so buyers swarm, while a floor holds it up so sellers pile in.

**Recap.** The crossing clears the market, and gaps above or below push the price back.

## 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)