Question

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.

Answer 1

Select the third statement.

Explanation: Scarcity (or the perception of it) raises an item's value because consumers and firms compete for limited supply. That increases willingness to pay and can lead to stockpiling and price rises (e.g., toilet-paper shortages). The first two statements are incorrect: resources are scarce (not unlimited), and businesses can and do anticipate demand and adjust production and prices.