explian the statement :
scarcity refers to a situation when demand exceeds its supply even at zero price .
Dear Student,
To understand this statement, you need to understand the difference between the abundant and scarce.
There are certain goods which are demanded even when their price is zero. Many of the natural commodities, such as air, sunlight, etc. come under the category of such goods. These goods are available relatively in abundance as compared to its demand even when the price is zero (i.e when goods are freely available).
On the contrary, we can define scarcity as a situation where demand exceeds its supply even when the price is zero. That is, a good is said to be scarce in availability when the demand for the good is greater than its supply.
Keep Posting!!
To understand this statement, you need to understand the difference between the abundant and scarce.
There are certain goods which are demanded even when their price is zero. Many of the natural commodities, such as air, sunlight, etc. come under the category of such goods. These goods are available relatively in abundance as compared to its demand even when the price is zero (i.e when goods are freely available).
On the contrary, we can define scarcity as a situation where demand exceeds its supply even when the price is zero. That is, a good is said to be scarce in availability when the demand for the good is greater than its supply.
Keep Posting!!