Question

What does the concept of scarcity explain? Check all that apply.

Answer 1

Scarcity refers to the limited availability of a commodity, which may be in demand in the market. The concept of scarcity also includes an individual capacity to buy all or some of the commodities as per the available resources with that individual.

Answer 2

Scarcity is a term used to define the unevenly distribution of resources in our economy. It is a fact that most of the resources in our economy are scarce and there is need to use them sparingly and in preservative manner. Individuals should not misuse the resources since they are not cheaply achieved. Scarcity is therefore to educate us on using products in a an economical way.