If the total demand for resources exceeds its total supply at zero price level, it is called_

If the total demand for resources exceeds its total supply at the zero price level, it is called a shortage.

Explanation

In economic terms, a shortage occurs when the quantity demanded of a good or service exceeds the quantity supplied at a given price. In the case of a zero price level, where the price is effectively free, consumers tend to demand an unlimited quantity of goods or resources because they do not have to pay for them. However, producers or suppliers may not be able to supply the same quantity, leading to an imbalance.

This situation creates pressure on the market since consumers may want more of the resource than what is available. Over time, the shortage may lead to increased prices (if a formal pricing mechanism were in place) as suppliers seek to balance demand with their limited supply. In conclusion, understanding shortages is critical for analyzing market behaviors and can help policymakers in designing interventions to address imbalances in supply and demand.