What is the difference between a shortage and scarcity?

The correct answer is:

**A shortage can be temporary or long-term, but scarcity always exists.**

**Explanation:**
- **Scarcity** refers to the fundamental economic problem of having seemingly unlimited human wants in a world of limited resources. It is a pervasive condition that exists due to limited resources available to meet unlimited wants.
- **Shortage**, on the other hand, is a situation that occurs when the quantity demanded of a good or service exceeds the quantity supplied at a certain price. This can happen due to various reasons such as price controls, natural disasters, or increased demand, and it can be temporary or long-lasting.

Therefore, while scarcity is a constant condition, shortages are situational and can vary over time.