What Is the Difference Between a Shortage and Scarcity

question 70

Multiple Choice

What is the difference between a shortage and scarcity?

• A) Scarcity will always exist because choices must be made, but a shortage will only exist if the price is kept below the equilibrium level.
• B) Scarcity is a result of two or more alternative uses and will always exist, and quantities of supply and demand adjusting to flexible prices will create shortages.
• C) A surplus will exist when a good is scarce; a shortage merely implies that there isn't as much of something as people would like, which is nearly always the case.
• D) There is no distinction between the two.They are the same thing.