While shopping you discover that your favorite department store has lowered the price on a hot, new MP3 player that you wanted to buy. You rush into the store, only to find that they are sold out. This scenario illustrates the concept of
a) scarcity
b) shortage
Im confused !
This site explains the differences between shortage and scarcity very well.
http://int.danville.k12.pa.us/teacherweb/mboonie/site/Scarcity_&_Shortage.html
While shopping you discover that your favorite department store has lowered the price on a hot, new MP3 player that you wanted to buy. You rush into the store, only to find that they are sold out. This scenario illustrates the concept of
Shortage would be the correct answer. the definition of scarcity is the dollars that become available for investors to use when others save. If you think about it, the store didn't have enough so it would be a shortage. Hope this helps
This scenario illustrates the concept of a shortage.
A shortage occurs when the quantity of a good or product demanded by consumers is higher than the quantity available in the market. In this case, the hot, new MP3 player is in high demand, but the department store does not have enough in stock to meet that demand. As a result, the product is sold out, causing a temporary shortage.
On the other hand, scarcity refers to a situation where the resources or factors of production required to produce a good or service are limited, leading to a limited supply of that good or service in the market. Scarcity is a broader concept that applies to all goods and services, whereas a shortage refers to a specific situation of imbalance between demand and supply.
In summary, while scarcity is a more general concept, this scenario specifically represents a shortage because the store has a temporary lack of the desired MP3 player despite the demand for it.