QuestionAugust 8, 2025

Sam recently got a promotion at work and is finally going to try to buy his first house for his family. When looking at the market, he realizes there are not enough houses on the market. Is this scarcity or a shortage? Scarcity Shortage

Sam recently got a promotion at work and is finally going to try to buy his first house for his family. When looking at the market, he realizes there are not enough houses on the market. Is this scarcity or a shortage? Scarcity Shortage
Sam recently got a promotion at work and is finally going to try to buy his
first house for his family. When looking at the market, he realizes there are
not enough houses on the market.
Is this scarcity or a shortage?
Scarcity
Shortage

Solution
4.0(131 votes)

Answer

Shortage Explanation 1. Define Scarcity Scarcity refers to the fundamental economic problem of having limited resources to meet unlimited wants and needs. It is a constant condition. 2. Define Shortage A shortage occurs when the demand for a product exceeds its supply at a specific price point, often temporarily. 3. Analyze Situation Sam's observation of not enough houses on the market indicates a temporary imbalance between supply and demand, characteristic of a shortage.

Explanation

1. Define Scarcity<br /> Scarcity refers to the fundamental economic problem of having limited resources to meet unlimited wants and needs. It is a constant condition.<br />2. Define Shortage<br /> A shortage occurs when the demand for a product exceeds its supply at a specific price point, often temporarily.<br />3. Analyze Situation<br /> Sam's observation of not enough houses on the market indicates a temporary imbalance between supply and demand, characteristic of a shortage.
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