2007-10-16 13:30:57 · 3 answers · asked by nytrinigal 1 in Social Science ➔ Economics
Scarcity is when people want more or would use more of a resource if it where free than the amount available at no cost. Markets by balancing supply and demand determine the price of the resource so supply =demand in equilibrium.
Shortages (demand > supply) do not exist in equilibrium, . However when the economy is disturbed the equilibrium, may not be reached in the short term, for example after a natural disaster, or even long term if there is continuous government interference, price controls.
2007-10-16 22:13:33 · answer #1 · answered by meg 7 · 0⤊ 0⤋
Scarcity Microeconomics
2016-12-13 08:27:37 · answer #2 · answered by ? 4 · 0⤊ 0⤋
shortage = demand > supply
It usually happens when market fails due to government intervention (e.e price controls) or intrinsic properties of the market (public good), and can usually be resolved.
scarcity = finite amount of resource. It's a permanent condition and it's true for each and every resource except air and maybe water.
2007-10-16 13:35:12 · answer #3 · answered by Anonymous · 1⤊ 0⤋