With all else equal, customers will buy more at lower prices and less at higher prices. Producers, on the other hand, are able to supply more at higher prices than they can at lower prices. The market-clearing or equilibrium price is located at the intersection of the supply and demand curves. At this price, the amount that producers supply just equals the amount that consumers demand. If firms charge a price that is higher than the market-clearing price, demand falls short of supply. Producers see inventories pile up as consumers buy other goods. If the price is lower than the market-clearing price, everything that is produced is bought. Shortages and backlogs occur, signaling the need to increase production and/or to raise prices.