When there is a limited amount of a product, such as rare art or collectible cars, this is known as _____.
A.
scarcity
B.
elasticity
C.
supply
D.
demand
A. scarcity
The correct answer is A. scarcity.
Scarcity refers to a situation where the quantity of a particular good or resource is limited in relation to its demand. When a product, such as rare art or collectible cars, is limited in quantity and high in demand, it creates a sense of scarcity in the market. This scarcity often increases the value and desirability of the product, as people are willing to pay more to acquire something that is rare and hard to find.
To determine the answer, you can use your knowledge of economics and the concept of scarcity. The other options, elasticity, supply, and demand, are related to economics but do not specifically describe the situation of a limited quantity of a product. Elasticity refers to how responsive the demand or supply of a product is to changes in price or other factors. Supply refers to the quantity of a product that producers are willing and able to sell at various prices. Demand refers to the desire and ability of consumers to buy a product at various prices.
In this case, the best answer is A. scarcity because it accurately describes the situation of a limited amount of a product.