In a market economy, what is scarcity of resources most clearly reflected in?
A) supply
B) demand
C) market prices
D) the stock of the resource

Question

Quizplus · Accepted Answer

Scarcity of resources is reflected in market prices. When a resource is scarce, the demand for it typically exceeds the available supply, driving up the price. This higher price signals to consumers and producers that the resource is valuable, and encourages conservation and innovation to find alternative sources or substitutes.

In a Market Economy, What Is Scarcity of Resources Most