Question

2.
How could scarcity influence the value of toilet paper rolls?

Select {responseValue}
Since resources are unlimited and demands are limited, businesses must make choices about what to produce.

Select {responseValue}
Businesses cannot anticipate how valuable an item will be to a consumer so they are not able to regulate production.

Select {responseValue}
Individuals and businesses place an increased value on items that are perceived as being scarce in supply.

Select {responseValue}
Businesses consider items that are perceived as being abundant in supply as valuable.

Answer 1

Select the third statement.

Explanation:
- True: "Individuals and businesses place an increased value on items that are perceived as being scarce in supply." Scarcity raises marginal value and willingness to pay.
- False: The first is wrong because resources are limited and wants are unlimited (not the other way around).
- False: The second is false — businesses can and do anticipate demand and regulate production, though not perfectly.
- False: The fourth is incorrect — abundant supply typically reduces value.