What is the difference between a shortage and scarcity?
A)Scarcity will almost always exist,but a shortage will exist only if the price is kept below the equilibrium level.
B)Scarcity is a result of two or more alternative uses,and quantities of supply and demand adjusting to flexible prices will create shortages.
C)A shortage will exist when a good is scarce.
D)There is no distinction between the two.They are the same thing.

Question

Quizplus · Accepted Answer

Scarcity refers to the concept that resources are limited, whereas shortage specifically refers to a situation where the quantity demanded exceeds the quantity supplied at the market price. Scarcity is a fundamental economic concept that always exists, whereas a shortage is a temporary situation that can be resolved through changes in price or supply.

What Is the Difference Between a Shortage and Scarcity