Question

A good or service is said to be scarce when:

a. at a price of zero, there will not be enough to satisfy everyone's desire for it.
b. it is offered only to high income earners.
c. its price is too low.
d. it cannot be transported easily.
e. no one wishes to purchase it.

Answer 1

a. at a price of zero, there will not be enough to satisfy everyone's desire for it.

A good or service is said to be scarce when at a price of zero, there will not be enough to satisfy everyone's desire for it. Scarcity is one of the pillars of economy as basically it says that we do desire certain goods because they are scarce, otherwise we are not interested in those goos as much as when they are scarce.