The situation described demonstrates demand-induced scarcity. This occurs when a sudden increase in demand for a product or service (in this case, movie tickets) outstrips the available supply (the number of screens showing the movie). The initial expectation of low demand led to insufficient capacity to accommodate the unexpectedly high interest after the movie received great reviews.
What type of scarcity is being demonstrated in the following situation?
The previews for a new movie looked bad. When the movie came out, it got great reviews. Now, most people want to go see it. As the theaters did not expect it to be popular, it is not showing on enough screens to accommodate the rush.
(1 point)
Responses
structural scarcity
structural scarcity
demand-induced scarcity
demand-induced scarcity
supply-induced scarcity
supply-induced scarcity
service-based scarcity
1 answer
1 answer