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Economics - Financial Markets 21 Online
OpenStudy (anonymous):

whatis an example of scarcity, rather than shortage?

OpenStudy (anonymous):

How about gold? It has very few actual uses so it's hard to suggest that it is short supply. It can be used for certain electrical components and for jewelry, but it can also be replaced with other metals for each of those. It is however in a LIMITED supply (as in we can't make more) and there is a demand for it, so it is scarce.

OpenStudy (anonymous):

Scarcity is when there is a lack of supply of something such as resources. Shortage is when there is a higher demand than the quantity that is produced.

OpenStudy (anonymous):

Scarcity can be of gold, diamonds...on the other hand shortage is temporary or for a certain region for example shortage of potatoes in india does not mean that potatoes are scare. :)

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