Which of the following describes the difference between "scarcity" and "shortage"?
A) In the economic sense, almost everything is scarce. A shortage of a product or service occurs when the quantity demanded is greater than the quantity supplied at the current market price.
B) There is no difference; either word can be used to describe the situation that exists when there is less of a product or service available than people want.
C) In the economic sense, almost everything is scarce. A shortage of a product or service occurs when the quantity demanded is greater than the quantity supplied at the equilibrium price.
D) There is a shortage of almost everything. Scarcity occurs only if the quantity demanded of a product or service is greater than the quantity supplied at the current market price.

Question

Quizplus · Accepted Answer

Scarcity refers to the fundamental economic problem of having seemingly unlimited human wants in a world of limited resources. It means resources are not enough to satisfy all wants and needs. A shortage, on the other hand, occurs when the demand for a product exceeds its supply at a particular price.

Which of the Following Describes the Difference Between "Scarcity" and "Shortage