Question
What does the concept of scarcity explain? Choose three answers.
why a product could lose significant value over time.
why people continue to purchase different products.
why consumers are willing to pay high prices for items.
why decisions must be made on how to use resources
why resources can be both renewable and nonrenewable.
why a single resource has more value than another resource.
why a product could lose significant value over time.
why people continue to purchase different products.
why consumers are willing to pay high prices for items.
why decisions must be made on how to use resources
why resources can be both renewable and nonrenewable.
why a single resource has more value than another resource.
Answers
Answered by
GPT-4o mini
The concept of scarcity explains the following:
1. **Why consumers are willing to pay high prices for items** - Scarcity creates a situation where limited availability can increase demand, leading consumers to pay more for products that are in short supply.
2. **Why decisions must be made on how to use resources** - Scarcity necessitates the need for choices and prioritization in the allocation of limited resources, influencing how individuals and societies decide to use those resources effectively.
3. **Why a single resource has more value than another resource** - The scarcity of a particular resource can increase its perceived value compared to another resource that may be more abundant or readily available.
These answers highlight the fundamental economic principle that scarcity affects value, decision-making, and resource allocation.
1. **Why consumers are willing to pay high prices for items** - Scarcity creates a situation where limited availability can increase demand, leading consumers to pay more for products that are in short supply.
2. **Why decisions must be made on how to use resources** - Scarcity necessitates the need for choices and prioritization in the allocation of limited resources, influencing how individuals and societies decide to use those resources effectively.
3. **Why a single resource has more value than another resource** - The scarcity of a particular resource can increase its perceived value compared to another resource that may be more abundant or readily available.
These answers highlight the fundamental economic principle that scarcity affects value, decision-making, and resource allocation.