The forces of supply and demand have some influence on the prices that are set, as
shown in the case of price setting either by sellers (a), or by buyers (b), although the
forces may fail to equate amounts supplied and demanded (Qs!=Qd) due to the timing of
price changes. The stickiness of price before a certain quantity amount (Q1), some
quantities of supplied (Qs) will not be sold as shown in (a), which creates an excess (
demand, supply ), i.e., ( surplus, shortage). Similarly, we can see the sticky price attached
to the Demand before a certain quantity amount (Q1) as shown in (b), which likely will
show some unfilled demand such as excess ( demand, supply ), i.e., ( surplus, shortage)
unless supply increase up to Sā. Thus, inefficient allocation or production occurs from
surpluses or shortages.