When an economist states a good is scarce, she means that

Question

Quizplus · Accepted Answer

Scarcity refers to the imbalance between the amount of a good available and the desire for that good. In other words, the demand for the good exceeds the supply that is freely available from nature. Production may be able to increase the quantity of the good available, but it cannot eliminate scarcity altogether. Rarity (option B) is related to scarcity, but not necessarily the same thing. Option D is not accurate as people may not be willing to purchase more of a good at extremely high prices.

When an Economist States a Good Is Scarce, She Means