When is a good or service considered scarce?
A) if any quantity of it can be consumed at a zero price
B) if the amount people desire exceeds the amount available at a zero price
C) if the amount people desire exceeds the amount available at any price
D) if the amount people desire is less than the amount available at any price

Question

When is a good or service considered scarce?  
A) if any quantity of it can be consumed at a zero price 
B) if the amount people desire exceeds the amount available at a zero price 
C) if the amount people desire exceeds the amount available at any price 
D) if the amount people desire is less than the amount available at any price

Quizplus · Accepted Answer

A good or service is considered scarce when the amount people desire exceeds the amount available at a zero price. This is because if there is no price attached to a good or service, people will opt to consume as much of it as possible, eventually leading to scarcity. Therefore, the true measure of scarcity lies in the relationship between the quantity demanded and the quantity supplied, rather than the price.

When Is a Good or Service Considered Scarce