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

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

A) why a product could lose significant value over time.

B) why people continue to purchase different products.

C) why consumers are willing to pay high prices for items.

D) why decisions must be made on how to use resources

E) why resources can be both renewable and non-renewable.

F) why a single resource has more value than another resource.

In economics, scarcity is a concept that shows the disparity that exists between the people’s wants and the available resources. All the choices made according to the prioritized purpose during the allocation of these scarce items. Opportunity costs are, therefore, vital when making such decisions. The preference for certain resources and their importance is normally higher based on the significance they are to the well-being of the society or an individual.

The concept of scarcity touches on a number of things as highlighted in choice C, D and F among other things. It can be used to explain the reason consumers are willing to pay high prices for items, why decisions must be made on how to use resources and why a specific resource has more value compared to others.

Economics

3 years ago

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