How is sarcarcity different from shortages?

Answer 1

Scarcity refers to the fundamental economic problem where limited resources are available to meet unlimited human wants, meaning that resources are inherently insufficient to satisfy all desires. In contrast, shortages occur when the demand for a good or service exceeds its supply at a specific price, often due to temporary factors such as price controls or sudden increases in demand. While scarcity is a permanent condition of resources, shortages can be resolved over time through adjustments in production or price changes.