Question

What is the difference between a shortage and scarcity?

Group of answer choices

A shortage results from rising prices; a scarcity results from falling prices.

There is no real difference between a shortage and a scarcity.

A shortage can be temporary or long-term, but scarcity always exists.

A shortage is a lack of all goods and services; a scarcity concerns a single item.

Answer 1

[AI-generated answer — Bot GPT 3.5]

A shortage is a situation where the quantity demanded of a good or service exceeds the quantity supplied at a given price, leading to a temporary imbalance in the market. Scarcity, on the other hand, refers to the limited availability of resources in relation to the unlimited wants and needs of individuals. In other words, scarcity is a fundamental economic problem that exists at all times, while a shortage is a specific and temporary imbalance in the market.