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Hoochie [10]
3 years ago
14

How does scarcity affect a country's economy?

Social Studies
1 answer:
spayn [35]3 years ago
7 0
Scarcity limits both how much of something can be made, how quickly it can be made, and, by extension, who can afford it. Scarcity can relate to the raw materials or resources necessary to produce something. Scarcity can relate to the availability of individuals possessing the right skills and experience to provide your goods or services. Scarcity can also relate to how much disposable capital your customers (or investors) have to supply you with. A shortage in any of these things can deform the market, driving up prices or wages, in the case of the first two, or driving prices down or reducing ability to expand in the case of the last example.
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