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Using complete sentences, explain (in economic terms) the difference between scarcity and shortage.

User Quandrum
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Answer:

Step-by-step explanation:

Responses will vary. A sample response follows:

Scarcity is used to refer to the idea that, overall in the world, there are not enough resources to meet humans’ unlimited needs and wants. Scarcity is an on-going condition. Shortage, on the other hand, refers to a situation caused by an imbalance in supply and demand. A shortage occurs when producers are not willing or able to supply as much as consumers demand. A shortage can last a long time or a short time, depending on how long it takes for supply and demand to come into balance.

User Taudorf
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