Not everyone gets into college. What type of scarcity causes this? In your answer, discuss each type of scarcity: supply, demand, and structural.
a
College admission is a supply-induced scarcity because the number of people that can get into college is lower than the demand. It is not a demand-based scarcity since the demand remains constant throughout the years. It is not a structural scarcity since more colleges can be built.
b
College admission is demand-induced scarcity because the number of people that want to go to college rises as the population increases. It is not structural scarcity since it is not a limited natural resource. It is not a supply-based scarcity since the number of colleges is growing, not dropping.
c
College admission is a supply-induced scarcity because there is not a large enough supply of colleges to accommodate everyone. It is not structural scarcity since it is not a limited natural resource. It is not a demand-based scarcity since the demand remains constant throughout the years.
d
College admission is structural scarcity because not enough physical college campuses have been built. It is not a supply-based scarcity since the supply is not dropping. It is not a demand based scarcity since the demand remains constant throughout the years.
The correct answer is a.
Explanation:
Scarcity refers to the limited availability of resources in relation to the unlimited wants and needs of individuals and society. In the case of college admission, scarcity arises because there are not enough places available in colleges to meet the demand from students who want to enroll.
There are three types of scarcity:
1. Supply-induced scarcity - it occurs when the supply of a particular good or service is not sufficient to meet the demand for it.
2. Demand-induced scarcity - it occurs when the demand for a particular good or service is higher than the available supply.
3. Structural scarcity - it occurs due to a lack of physical infrastructure, technology, or other resources necessary to produce a particular good or service.
In the case of college admission, supply-induced scarcity is the relevant type of scarcity. This is because the number of people who can get into college is lower than the demand from students who want to enroll. It is not a demand-based scarcity because the demand for college education remains relatively constant over time. It is not a structural scarcity because more colleges can be built to meet the demand.
d
College admission is structural scarcity because not enough physical college campuses have been built. It is not a supply-based scarcity since the supply is not dropping. It is not a demand-based scarcity since the demand remains constant throughout the years. The limited availability of physical college campuses restricts the number of students who can be accommodated, resulting in not everyone being able to get into college.