What Is the Difference Between a Shortage and Scarcity

question 241

Multiple Choice

What is the difference between a shortage and scarcity?

• A)Scarcity will almost always exist,but a shortage will exist only if the price is kept below the equilibrium level.
• B)Scarcity is a result of two or more alternative uses,and quantities of supply and demand adjusting to flexible prices will create shortages.
• C)A shortage will exist when a good is scarce.
• D)There is no distinction between the two.They are the same thing.

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Definitions:

Population Size

The total number of individuals or units in the group that a researcher or analyst is interested in studying.

Probability Of Success

The likelihood of a particular outcome deemed as 'success' occurring in a given trial or experiment.

Coin Toss

A coin toss is a basic experiment in probability theory used to demonstrate randomness, with two possible outcomes: heads or tails.

Poisson Distribution

A probability distribution that measures the likelihood of a given number of events happening in a fixed interval of time or space.