What is flexible pricing so important? Consider your approach to handling a shortage and an excess if you were a store manager. Using a recent purchase that you had to make, explain how the law of demand applies.

13. What is the difference between a shortage and scarcity? A) Scarcity will almost always exist, but a shortage will exist only if the price is kept below the equilibrium level. B) Scarcity is a result of two or more alternative uses, and quantities of supply and demand adjusting to flexible prices will create shortages. C) A shortage will exist when a good is scarce. D) There is no distinction between the two. They are the same thing.

Why is resource pricing important?