3.9B Scarcity of Resources Practice

The pandemic caused companies to stop producing smart chips for cars therefore there were less cars to sell.

What do you think happened to the price of cars during this smart chip shortage?

• Prices for cars stayed the same

• Prices for cars decreased

• Prices for cars increased

• Not here

Answer explanation

When a resource is scare (not available), the price usually increases.

Because they were unable to make as many cars, the prices of the cars increased.

When a resource is _____, the price of the resource can increase.

• Abundant

• Scarce

• Available

• Unpopular

Answer explanation

When a resource is scarce, the price usually increases.

Scarce means there is not a lot of that resource available to purchase.

The winter freeze in Texas during 2021 destroyed the orange trees in the Rio Grande Valley. This had an effect on the price of oranges in Texas during the spring and summer.

Which statement describes the most likely effect on the price of oranges?

• The price will likely increase, because there are more oranges available to buy.

• The price will likely decrease, because there are more oranges available to buy.

• The price will likely decrease, because there are less oranges available to buy.

• The price will likely increase, because there are less oranges available to buy.

Answer explanation

Oranges were destroyed by the freeze, so there is less oranges to sell.

This resource is now scarce.

Scare resources usually have a price increase.

Less oranges = Price increase

When a resource is abundant, the price of the resource will likely ______.

• Increase

• Decrease

• Stay the Same

• Not Here

Answer explanation

When you have too much of a resources, the price usually drops.

Lower price = Too many of that resource

Using the table, in which week would the price of the apple be the least?

• Week 1

• Week 2

• Week 3

• Week 4

Answer explanation

The apples should be at their lowest price during Week 2 because there are more apples than expected customers.

Apples - 200

Customers - 100

The apples are not scarce they are abundant, so they should sell them for a lower price to get rid of them.