Multiple choice

Occurs when demand exceeds supply.

  1. scarcity

  2. shortage

  3. no supply

  4. demand
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

A shortage occurs in economics when the quantity demanded for a good or service exceeds the quantity supplied at the current price. Scarcity is a permanent condition where resources are limited, whereas a shortage is a temporary market imbalance.

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