Question

How does scarcity affect customers?

(1 point)

Limited money forces consumers to make choices.


Limited time prevents customers from making decisions.


Limited numbers of producers force customers to be loyal.


Limited wants and needs limit customers to small purchases.

Answer 1

Correct answer: Limited money forces consumers to make choices.

Explanation: Scarcity means resources (like money or time) are limited while wants are unlimited, so consumers must decide how to allocate their limited resources among competing needs.