Question

Which categories of goods used by ordinary people are most affected by scarcity? Use examples from two of these categories and explain how the scarcity of these goods might arise and how this scarcity would affect most people.

Answer 1

Answer:

nondurable and consumer goods

Explanation:

Nondurable goods are affected by scarcity because their time life is limited. For example, if the capital goods required for its transportation or conservation of ice cream broke down, the product would ruin very easily.

Consumer goods are generally mass consumed. For example clothes are consumed by most of us during the year, but most of them are imported nowadays. Any trade barrier that delayed their supply would cause a rapid shortage.