SURPLUS

Surplus is when the supplies exceed the demand for the supplies.

SUPPLIES > DEMAND

When there is a surplus, the price will shift downward to the Equilibrium.
to reach the Equilibrium, the supply will move along the frontier left, and the demand will move along the frontier right.

SHORTAGE

Shortage is when the supplies do not meet the demand for the supplies.

DEMAND > SUPPLIES

When there is a shortage, the price will shift upward to the Equilibrium.
To reach the Equilibrium, the supply will move along the frontier right, and the demand will move along the frontier left.

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EXAMPLE

2008, Various weather conditions caused the orange crop to fail, causing the Supply to fall below the current demand. A shortage was declared. http://www.washingtonpost.com/ wp-dyn/content/article/2006/ 10/14/AR2006101400451.html

In 2008, after a particularly rough hurricane season, most of the US orange supply was damaged and weakened. Orange trees were destroyed and the total quantity of Oranges in the U.S. decreased dramatically. Companies Like Coca-cola and Tropicana were forced to import more oranges from Brazil at a higher price. In order to continue making a profit on their products they had to increase the price as well, reducing the quantity demanded. The market is still recovering and fluctuating around the equilibrium.