Click to review the online content. Then answer the question(s) below, using complete sentences. Scroll down to view additional questions. Why does scarcity require choice? What is the cost of a choice? (Site 1)

The shortage requires choice because it causes an economic imbalance, very damaging to the state, and it is necessary that the governors make choices that allow the economic balance to be established, with time.

The price of this choice is usually to allow inflation to rise.

Explanation:

Scarcity is an economic term used to describe a time when there is an imbalance between demand and supply within a region. This imbalance is generated when demand is much greater than supply, which causes many economic and even social problems for a country.

In this case, scarcity forces governments and companies to choose, maintain scarcity and try to produce more of the product, or impose that companies increase the price of products by limiting their purchase. However, this allows inflation in the country to increase and the circulation of money to decrease.

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