Question

Click to review the online content. Then answer the question(s) below, using complete sentences. Scroll down to view additional questions. Online Content: Site 1 According to the article, how does scarcity impact financial choices for individuals? (Site 1)

Answer 1

Hello. You did not show the title of the article you are referring to, but we can say it affects the financial choices of individuals because they will have to make concessions and give up some products to guarantee the purchase of essential products.

Step-by-step explanation:

When a population is facing product shortages, the economic decisions of individuals are strongly impacted. This is because each consumer must make concessions to buy the products they need and which are essential for survival. Often due to scarcity, these products are of lesser quality, but serve to supply those in need. In other words, consumers will have to allocate their financial resources to products they need, giving up, often with higher quality products and unnecessary products.

Answer 2

What the study found was that context mattered more to people with high incomes. They were willing to pay more for a sandwich at a fancy hotel than the same sandwich at a small grocery store. People with low incomes, on the other hand, had a specific amount they were willing to pay for a sandwich regardless of the location. Those people cared more about the sandwich’s value, rather than the context of the purchase. For example, instead of choosing which shirt to buy based on the store, people dealing with scarcity would have to decide whether to pay for a shirt or for gas or for tomorrow’s lunch.

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