3
QuizMultiple Choice

Introduction to Economics

Question 3 • FL-2106010-M/J Civics B

A new product is released to greater demand than expected. Many people want the product, but there is not enough to meet the demand. This scenario BEST illustrates which of the following economic problems?

Answer
A
scarcity
B
shortage
C
surplus
D
supply

Explanation

A shortage occurs when the quantity people want to buy is greater than the quantity available. Since many people want the new product but there is not enough to meet that demand, this illustrates a shortage. Scarcity is the broader condition that resources are limited relative to people’s wants.

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