What do economists mean when they state that a good is scarce? a. There is a shortage or insufficient supply of the good at the existing price. b. It is impossible to expand the availability of the good beyond the current amount. c. People will want to buy more of the good regardless of the price of the good. d. The amount of the good that people would like exceeds the supply freely available from nature.

Question

Avery Coffey

Business

7 October, 00:49

What do economists mean when they state that a good is scarce? a. There is a shortage or insufficient supply of the good at the existing price. b. It is impossible to expand the availability of the good beyond the current amount. c. People will want to buy more of the good regardless of the price of the good. d. The amount of the good that people would like exceeds the supply freely available from nature.

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Mario Lam · Answer 1

Answer: Option D

Explanation: Scarcity refers to the limited availability of any commodity. This term is generally used for natural resources as all other commodities production is dependent on supply of natural resources.

The scarcity concept generally relates to the volume and not price of the resource. Scarcity in economics refers to the problem of limited supply of resources for limitless wants of the users.

Hence, the correct option is D.