Author Question: What does scarcity have to do with the fact that people must make choices? What will be an ideal ... (Read 85 times)

pepyto · **on:** Jun 29, 2018

What does scarcity have to do with the fact that people must make choices?

What will be an ideal response?

Question 2

Holding demand constant, a reduction in supply leads to

A) lower prices and higher quantity demanded.
B) lower prices and lower quantity demanded.
C) higher prices and higher quantity demanded.
D) higher prices and lower quantity demanded.

lin77x · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

Scarcity implies that people cannot have everything they want. This implies that ways must be found to determine which of the many goods that people want will actually be produced. Further, since any person cannot have everything he or she wants, the person must decide which specific things to acquire. That is, the person must make choices.

Answer to Question 2

D