GENERAL KNOWLEDGE

Detailed explanation-1: -Scarcity is one of the key concepts of economics. It means that the demand for a good or service is greater than the availability of the good or service. Therefore, scarcity can limit the choices available to the consumers who ultimately make up the economy.

Detailed explanation-2: -When the supply of a good is greater than the demand for that good, a surplus ensues. This drives down the price of the good. Disequilibrium also occurs when demand for a commodity is higher than the supply of that commodity, leading to scarcity and, thus, higher prices for that product.

Detailed explanation-3: -Resource scarcity occurs when demand for a natural resource is greater than the available supply – leading to a decline in the stock of available resources. This can lead to unsustainable growth and a rise in inequality as prices rise making the resource less affordable for those who are least well-off.

Detailed explanation-4: -Scarcity refers to a limited supply of goods. That scarcity can then lead to high demand from consumers. According to the scarcity principle, the price of an item in low supply and high demand will steadily rise to meet the consumers’ expected demand.

Detailed explanation-5: -Economic scarcity is a concept that paints a picture where the demand for resources is high, and the availability of resources is limited so indicating a gap between limited resources and unlimited wants. Scarcity is also known as paucity, and the opposite is abundance.