ECONOMICS
SCARCITY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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many people are unemployed
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Interest rates go up
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People have trouble supplying goods and services at current prices
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The United States exports more than it imports
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Detailed explanation-1: -In economics, there are three main reasons or causes of shortages-an increase in demand, a decrease in supply, or government intervention (price ceilings for example).
Detailed explanation-2: -A shortage is a situation in which demand for a product or service exceeds the available supply. When this occurs, the market is said to be in a state of disequilibrium. Usually, this condition is temporary as the product will be replenished and the market regains equilibrium.
Detailed explanation-3: -If a shortage exists, price must rise in order to entice additional supply and reduce quantity demanded until the shortage is eliminated.
Detailed explanation-4: -Water shortages, food shortages, power shortages, and labor shortages are a few examples of the common types of economic shortages. On the other hand, a shortage is a situation where the quantity is not limited in nature but is available in a lesser quantity at a particular time.