Final answer:
The agricultural town experiencing a drought which leads to a lower production of crops exemplifies the economic situation of scarcity due to a decreased supply of goods at any given price (B).
Step-by-step explanation:
When an agricultural town experiences a drought and is not able to produce as many crops as usual, the economic situation created is known as scarcity. This occurs because the supply of agricultural products decreases, which means that at any given price, a lower quantity of goods will be supplied. An example demonstrating the impact of climate on agricultural production can be observed in 2014 when the Manchurian Plain in Northeastern China, which produces a significant portion of the country's wheat, corn, and soybeans, experienced its most severe drought in 50 years leading to a reduced supply of these products.
The economic situation created by the scenario is scarcity. Scarcity occurs when there is a limited availability of resources or goods relative to their demand. In this case, the drought has decreased the supply of agricultural products, leading to a scarcity of crops in the town. This scarcity affects the ability of the farmers to provide the promised amount of products to grocery stores.