Question

Using four or more sentences, summarize the concept of relative scarcity.

Answer 1

Scarcity serves as the foundational concept in economics. Without people's desires, there would be no scarcity or motivation to produce goods. Almost everything, except free goods like air and water, is deemed relatively scarce. Diamonds exemplify relative scarcity; you can obtain them, but they come at a higher price. Scarcity is intrinsic but largely relative. When prices regulate the allocation of goods, scarcity is relative to other items. One-of-a-kind artworks are genuinely scarce, as only one exists, and no matter the cost, a second identical original cannot be obtained.

Step-by-step explanation:

edge 2023

Answer 2

Scarcity is the base unit of economics. If people didn't desire things then there would be no scarcity or reason to produce things. Anything that is not a free good (air, water, dirt etc...) is considered relitavely scarce. Diamonds are relatively scarce but you can get them if you want them they just cost more than you might perfer. Scarcity is inherent but almost all relative. As long as price is allowed to ration the goods then the scarcity will be relative compared to other things. One of a kind art works are truly scarce since there is only one and no matter the cost you can't get a second one only another origional.