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

Question

Quizplus · Accepted Answer

Scarcity refers to the fundamental economic problem of limited resources versus unlimited wants and needs. Almost everything is scarce because resources are limited. Shortage, on the other hand, is a situation where the quantity demanded of a good or service is greater than the quantity supplied at the current market price, which can lead to a temporary imbalance in the market. Thus, there is a difference between the two terms. Option B captures this difference.

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