Disequilibrium happens when supply and demand are not equal.

Shortage occurs when there’s an excess of production or supply over demand.

Equilibrium price acts as a shorthand indication of the effect one economic variable has on another, provided all other variables remain the same.

In consideration of ceteris paribus, if the price increases, the supply decreases.

Demand is the willingness of a consumer to buy a commodity at a given price.

If the answer of price elasticity of demand is less than 1, it means that the demand is unresponsive to price change.

Price elasticity of demand is the measure of responsiveness of quantity demanded to price change.

If the answer of price elasticity of demand is equal to 1, we can say that the demand is perfectly elastic.

In calculating the price elasticity of demand, the answer is always negative.

The relationship between price and demand is inversely proportional.