Shortage vs. Scarcity: What’s the Difference?

The main difference between shortage and scarcity is that shortage is a temporary situation whereas scarcity is a more permanent condition.

Before we move to more differences, let’s first understand Shortage and Scarcity:

  • Shortage: Shortage refers to a situation where demand for a particular good or service exceeds the available supply, resulting in a temporary imbalance in the market.
  • Scarcity: Scarcity refers to a condition in which resources are limited relative to demand.

Now, let’s get to Shortage vs Scarcity:

Major differences between Shortage and Scarcity

Shortage Scarcity
Shortage can occur for a variety of reasons such as unexpected demand or supply chain disruptions. Scarcity is more likely to be a long-term condition.
Shortage typically results in higher prices for the affected goods or services. Scarcity can lead to rationing or other forms of resource allocation.
Shortage can often be resolved through increased production or importation of the affected goods or services. Scarcity requires more fundamental changes to resource management and consumption patterns.
Shortage is a market condition that can affect a specific good or service. Scarcity is a broader condition that can affect entire industries or regions.
Shortage is a market condition that can be resolved through increased production or importation. Scarcity requires a fundamental change in production or consumption patterns.

So, these are the main differences between the entities.

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