Differences between Shortage and Scarcity
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 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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