Identify the missing link: Scarcity, Demand, Supply, _______
Show answer & explanation
Correct answer: C
Explanation
The correct answer is Equilibrium.
Scarcity: When there is a shortage of something in the market.
Demand: Due to the shortage, the demand for that thing increases.
Supply: The supply of a product is increased to meet the demand.
Equilibrium: When both demand and supply reach the same level, a state of 'equilibrium' is created in the market.