This site explains the differences between shortage and scarcity very well.
http://int.danville.k12.pa.us/teacherweb/mboonie/site/Scarcity_&_Shortage.html
While shopping you discover that your favorite department store has lowered the price on a hot, new MP3 player that you wanted to buy. You rush into the store, only to find that they are sold out. This scenario illustrates the concept of
a) scarcity
b) shortage
Im confused !
3 answers
While shopping you discover that your favorite department store has lowered the price on a hot, new MP3 player that you wanted to buy. You rush into the store, only to find that they are sold out. This scenario illustrates the concept of
Shortage would be the correct answer. the definition of scarcity is the dollars that become available for investors to use when others save. If you think about it, the store didn't have enough so it would be a shortage. Hope this helps