Question

Scarcity Principle

A) Having more of one good thing usually means having less of another.

B) Products with inelastic demand have scarce factors of production.

C) It gets harder and harder to find skilled labor as an economic upturn continues.

D) There are fewer and fewer good investment ideas.

E) The axiom that when it is time to do the dishes, children become scarce.

Answer 1

Scarcity in economics it simply defined as when there is a limited availability of one resources as compare to other

it causes mismatch of demand and supply

This concept is also related with the opportunity cost principle

scarcity is a general term and not only related with labour or investment

option E is totally irrelevant

in elastic demand are those type of demands in which even there is a very high change in price but quantity demanded changes very slightly and scarcity is not directly price dependent Because many of time and even a person is able to pay a very high price but due to scarcity, the availability of resources he cannot get

so the only correct answer here is option a