Indicate how you think each of the following would shift demand in the indicated market: a. The incomes of buyers in the market for dining out decreases. The demand curve would (Click to select) b. Buyers in the market for pizza read a study linking pepperoni consumption to clogged arteries. The demand curve would (Click to select) c. Buyers in the market for gas-powered cars learn of an increase in the price of electric cars (a substitute for gas-powered cars). The demand curve would (Click to select) d. Buyers in the market for electric cars learn of an increase in the price of electric cars. The demand curve would (Click to select)

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Market Surplus and Shortage Analysis

In everyday language, a “surplus” indicates that there is an excess of something, while a “shortage” means that there is a scarcity of it. In economics, “market surplus” refers to the condition where the quantity of a certain good more available than what is required or “demanded” by the market. In the same way, a “market shortage” refers to the condition where the quantity of a certain good is less available than what is “demanded” by the market. If quantity in demand is written as Qd and quantity that is supplied is written as Qs, then, the condition Qs > Qd indicates market surplus and condition Qd > Qs indicates market shortage.