There is no shortage of scarce resources in a market economy because

Question

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In a market economy, prices act as a signal for producers to determine the optimal quantity of a good or service to produce. If there is a shortage, meaning that quantity demanded exceeds quantity supplied, the price of the product will increase. This increase in price will lead to a decrease in demand and an increase in supply, ultimately reaching an equilibrium point where quantity supplied equals quantity demanded and there is no longer a shortage. Therefore, resources will not be scarce in a market economy as prices adjust to eliminate shortages.

There Is No Shortage of Scarce Resources in a Market