What is scarcity? Can you think of two causes of scarcity?

Solutions

Expert Solution

Scarcity is the shortage in supply of resources. When the demand for a product is higher than its supply, then scarcity occurs. Most of the times, scarcity occurs due to humans inherent nature of limitless wants and available limited resources. When the available resources are not enough to satisfy the needs, then the problem of scarcity occurs. Scarcity can also happen when there is too little money to make a purchase. There are many other factors which leads to scarcity.
Two main causes of scarcity is demand and supply. The changes made in these two factors can lead to scarcity of an item. When the demand for a product rises unpredictably, then there will not be enough products readily available to face the situation. In such cases, scarcity can happen.
Another situation is when the supply is challenged by any of the causes such as natural calamities, producer shut downs an enterprise, etc., then the demand for that product will increase and there won't be enough products to satisfy the demand. Then also scarcity occurs.

Rahul Sunny answered 1 year ago

Next > < Previous

Related Solutions

Explain as completely as you can what an economist means by SCARCITY . What are the...

Explain as completely as you can what an economist means by SCARCITY . What are the major differences between scarcity and shortage. Describe the 4 economic resource categories and how they relate to the scarcity problem. Explain opportunity cost. How does it reflect scarcity? What does it have to do with decision-making?

What are the way to narrow the scarcity gap? What are the two broad types of...

What are the way to narrow the scarcity gap? What are the two broad types of Economic Organization? Plz answer all questions!

What are the most important causes of child death globally? Which do YOU think is the...

What are the most important causes of child death globally? Which do YOU think is the absolute most important and why? How would you go about solving this issue on a large-scale? Whom would you work with to solve this problem?

Causes of Cancer and Treatments What are some causes of cancer? Think about environmental, lifestyle, viral,...

Causes of Cancer and Treatments What are some causes of cancer? Think about environmental, lifestyle, viral, and genetic factors. Know what is meant by targeted therapies for cancer – how are they different from more traditional approaches like radiation and chemotherapy?

What reasons do you think are the largest causes as to why electronic health information standards...

What reasons do you think are the largest causes as to why electronic health information standards are important and difficult to implement? What is being done to facilitate interoperability? Include 1 reference

What are the physiological causes of two or three of the symptoms you chose, and how...

What are the physiological causes of two or three of the symptoms you chose, and how do they relate to the development and growth of the fetus?

1.Can we ever overcome the problem of scarcity? 2.Was scarcity less of a problem in simpler...

1.Can we ever overcome the problem of scarcity? 2.Was scarcity less of a problem in simpler folk-societies, such as those that existed before the Industrial Revolution?

In your opinion, how do you think we could solve the problem of scarcity, moreover, how...

In your opinion, how do you think we could solve the problem of scarcity, moreover, how do you think we could cut down on the usage of so limited resources and still be able to produce peoples wants and desires? Do you think that is possible at all?

Can you tell us what the keto diet is and if you think this is a...

Can you tell us what the keto diet is and if you think this is a sustainable way of eating?

Do you think that U.S. society can eliminate poverty? To what extent do you think this...

Do you think that U.S. society can eliminate poverty? To what extent do you think this outcome is likely?

Subjects