Which economic scenario is indicative of demand exceeding supply?

A scenario where demand exceeds supply is best described as a shortage. In this situation, the quantity demanded by consumers surpasses the quantity of goods or services that producers are willing and able to sell at a given price.

When demand is greater than supply, it indicates that consumers are willing to buy more than what is available in the market, leading to upward pressure on prices. This pressure typically results in higher prices as consumers compete for limited goods, ultimately pushing the market toward a new equilibrium where supply can better meet demand.

Market equilibrium denotes a state where the quantity supplied equals the quantity demanded, thus it does not indicate an imbalance. A surplus refers to a situation where supply exceeds demand, leading to excess goods remaining unsold. Equitable allocation pertains to a distribution of resources that is fair, but does not inherently relate to the balance between supply and demand. Therefore, the concept of a shortage is the most accurate representation of demand exceeding supply.