alleryStart learning →A scarce good has more quantity demanded than quantity supplied at which price?
AThe market price
BThe average price
CA price of zero
DThe maximum price
Answer & Solution
Correct answer: C. A price of zero
A good is scarce if people would still want more than is available even when it is free.
Keep practising Managerial Economics
Browse all Managerial Economics questions for CA Foundation, or explore more Business Economics topics.
Related questions
Consumers allocate their resources by choosing goods that maximize their happiness, takingWhich decision do firms make when allocating scarce resources?Walras described social wealth as things that are useful and available in what quantity?According to Samuelson, if infinite quantities of every good could be produced, which woulWhy can a nonscarce good not be contested over ownership?Goods that exist in superfluity, in quantities sufficient to satisfy all wants, are calledRelative abundance is the condition where available quantities of useful goods are what?Relative scarcity is the condition where human requirements are what compared to available