What characterizes a market shortage?

A market shortage occurs when the quantity demanded of a good or service exceeds the quantity supplied at a given price. This situation typically arises when the current price is set below the equilibrium price, leading consumers to want more of the product than what producers are willing or able to sell. As a result, there are not enough goods available in the marketplace to satisfy consumer demand, which can lead to increased prices or various strategies by sellers to ration the limited supply.

The other options describe different market conditions that do not represent a shortage. For instance, when the quantity supplied exceeds the quantity demanded, this indicates a surplus, where there are more goods available than consumers are willing to buy. Similarly, the assertion that all goods are priced equally suggests a lack of differentiation in pricing that does not inherently relate to shortages or surpluses. Lastly, claiming that prices have no effect on demand undermines the fundamental workings of supply and demand, where price changes typically influence consumer behavior and purchasing choices.