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?
For example we can use water. If a product becomes scarce its price would increase due to supply in demand. If drinkable water became scarce its price would be greatly increased to its need and being in extreme demand. In short, if there is a low supply and a high demand, there is an increase in price and vice versa.
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.
