If a Good Is Scarce

question 21

Multiple Choice

If a good is scarce,

• A) there will be shortages of it if the good is rationed by markets.
• B) the good will have a price in a market setting.
• C) there will be enough of the good freely available from nature to satisfy the human desire for it.
• D) all of the above are true.

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Definitions:

Elasticity

A measure of how much the quantity demanded or supplied of a good responds to a change in one of its determinants, such as price or income.

Marketing

The process of promoting, selling, and distributing a product or service, including market research and advertising.

Network Externality

A situation where the value of a product or service increases as the number of users expands.

Standardization

The process of developing and implementing technical standards to ensure the compatibility, safety, and quality of products and services.