Answer:
The causes of scarcity can be due to a number of different reasons, but there are four primary ones. Poor distribution of resources, personal perspective on resources, a rapid increase in demand, and a rapid decrease in supply are all potential scarcity causes.
Explanation:
In economics, factors of production are the resources people use to produce goods and services; they are the building blocks of the economy. Economists divide the factors of production into four categories: land, labor, capital, and entrepreneurship
The government decides the means of production and owns the industries that produce goods and services for the public. The government prices and produces goods and services that it thinks benefits the people. ... The government allocates its resources based on these objectives and is unchanged. If there is an increase in supply for goods and services while demand remains the same, prices tend to fall to a lower equilibrium price and a higher equilibrium quantity of goods and services.