There are not enough of four goods to satisfy the wants of p

There are not enough of four goods to satisfy the wants of people. For good A, this is true when the price is $100. This is true for good B at a price of $10, for good C at a price of $1, and for good D at a price of zero. Which situation reflects scarcity rather than shortage?

Solution

Ans=D

Scarcity occurs because resources are finite and are inadequate to meet all human wants and needs.Both rich and poor people face this problem .Scarcity always is a part of human life whereas shortages usually are temporary