Goods are scarce when:

Question

Quizplus · Accepted Answer

Scarcity is defined as the gap between unlimited wants and limited resources. So, whenever the amount people want is more than the amount available, goods become scarce. This can happen even if the price is high or low, or if the goods are necessities or not. However, if the price is too low, the demand will increase and the scarcity will become more acute. Similarly, if the price is controlled, it can distort the market signals and create shortages or surpluses.

Goods Are Scarce When