What does the concept of scarcity explain? Choose three answers.
A. Why a product could lose significant value over time.
B. Why people continue to purchase different products.
C. Why consumers are willing to pay high prices for items.
D. Why decisions must be made on how to use resources.
E. Why resources can be both renewable and nonrenewable.
F. Why a single resource has more value than another resource.
Answer (1)
Scarcity explains why limited resources lead to choices in allocation and can drive down a product's value through decreased demand, increased supply, or market saturation. It also highlights consumer willingness to pay for scarce items and the importance of resource management. Understanding scarcity helps in grasping economic principles and resource valuation. ;
