What is scarcity?
Understand the Problem
The question is asking for a definition and explanation of the concept of scarcity in economics, which refers to the limited availability of resources compared to the unlimited wants of individuals and society.
Answer
Scarcity is when demand exceeds availability.
Scarcity is when the demand for a good or service exceeds its availability, leading to limited choices for consumers.
Answer for screen readers
Scarcity is when the demand for a good or service exceeds its availability, leading to limited choices for consumers.
More Information
Scarcity is a fundamental concept in economics, emphasizing the limited nature of resources, which requires making choices about allocation.
Tips
A common mistake is confusing scarcity with shortage. Scarcity is a broader concept affecting all economic decision-making, while a shortage is temporary.
Sources
- Scarcity - Investopedia - investopedia.com
- Scarcity (article) | Basic Economic Concepts - Khan Academy - khanacademy.org
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