Describe a real or made up but possible example of a product that went through a time of scarcity. What was likely to happen to the price of the product when it was scarce, and why?

Answer:

Water. In third-world countries, there may be a scarcity of fresh drinking water, It the product is scarce, the price is likely to rise because of the law of supply: as the quantity supplied of a good falls, the price rises.

Explanation:

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