This statement is True. A shortage occurs when the demand for a good or service exceeds the supply at a given price. When prices rise, it often leads to an increase in supply and a decrease in demand, which can help eliminate the shortage. On the other hand, scarcity refers to the fundamental economic problem where resources are limited and cannot meet the unlimited wants and needs of people. Scarcity is a permanent condition in the economy, meaning it can never be fully eliminated regardless of price changes or resource allocations.
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