Final answer:
The statement that scarcity always results in quantity demanded exceeding quantity supplied is False. Scarcity indicates finite resources and infinite wants, but market dynamics often lead to equilibrium where demand and supply are balanced via pricing.
Step-by-step explanation:
The student's question pertains to the concept of scarcity in economics and whether it always results in the quantity demanded exceeding the quantity supplied. The answer is False. Scarcity does signify that human wants for goods and services exceed the available supply because resources are finite.
However, the law of supply and the law of demand dictate the relationship between supply, demand, and prices. While it is human nature to desire more than what is available, the quantity demanded will not always exceed the quantity supplied.
At higher prices, the quantity demanded is typically lower due to the law of demand, and conversely, the quantity supplied is higher because of the law of supply. The equilibrium, where the quantity demanded equals the quantity supplied, is often achieved through market dynamics, barring external interventions or inefficiencies.
Scarcity drives the need for economies to allocate resources efficiently and for markets to establish a price that balances supply and demand.