Question

Cheizza, a pizza vendor in the country of Wisbane, believes that the taste of fresh cheese in its pizzas is its unique selling point. However, recently there has been a rise in the number of pizza vendors in Wisbane who have also started using fresh cheese to prepare their pizzas. This has led to a drastic increase in the demand for cheese. However, the amount of milk produced in the country is insufficient to meet the increased demand for cheese. In the context of changing environments, which of the following does this scenario best illustrate?
A. Resource scarcity.
B. Punctuated equilibrium.
C. Discontinuous change.
D. Buyer dependence.

Answer 1

Answer:

The correct answer is letter "A": Resource scarcity.

Explanation:

Resource scarcity is the basic economic problem by which individuals have unlimited wants and needs but rely on limited sources to fulfill them. Because of this situation, individuals have to trade-off the satisfaction of part of some needs so others can be satisfied as well.

In the example, the scarce resource is the milk that is useful to produce cheese for the pizzas sold in Wisbane.