What do you understand by scarcity?
Understand the Problem
The question is asking for an explanation of the concept of scarcity, which is a fundamental economic principle regarding the limited availability of resources in comparison to the unlimited wants of individuals or societies.
Answer
Scarcity is when demand exceeds the availability of a good or service.
Scarcity is an economic concept that occurs when the demand for a good or service exceeds its availability, requiring individuals and societies to make choices about how to allocate limited resources.
Answer for screen readers
Scarcity is an economic concept that occurs when the demand for a good or service exceeds its availability, requiring individuals and societies to make choices about how to allocate limited resources.
More Information
Scarcity is a fundamental concept in economics that underscores the need for prioritizing resources and making decisions about how they are used.
Tips
A common mistake is thinking scarcity only relates to physical goods. It also includes time, services, and resources needed to produce desired outcomes.
Sources
- Scarcity - National Geographic - nationalgeographic.org
- What Is Scarcity? - Investopedia - investopedia.com
- Scarcity - Econlib - econlib.org
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