Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Micro Economics: Introduction

Question:

Scarcity for resources arises in which of the following cases?

Options:

Supply for resources > Demand for resources

Supply for resources > Desire for resources

Supply for resources < Demand for resources

Supply for resources < Desire for resources

Correct Answer:

Supply for resources < Demand for resources

Explanation:

Scarcity arises when the demand exceeds supply. So, when the demand for resources exceeds the supply of the resource, the situation of scarcity arises. Also, when we use the term demand, it means the quantity of a commodity that a person is willing and able to buy given the price of the commodity and the money income. We do not consider the desire for the commodity as demand.