Scenario: A developing country faces an energy crisis due to dwindling fossil fuel reserves and an inadequate energy infrastructure. The government must decide how to prioritize energy distribution among residential.industrial, and public services. 1. Describe how scarcity forces one of the following individuals, institutions, and societies to make an economic decision on addressing the energy crisis. 2. Explain how scarcity of energy might influence the behavior and choices of TWO of the following institutions, individuals or society in the country. Provide specific examples. 3. Evaluate the long-term impacts on society, individuals and businesses of the energy crisis on economic development 4. Apply scarcity to a unique real world situation that has an impact on individuals, institutions and societies. (You should be able to include aspects from Level 1,2, and 3 as you complete this question) (such as some of the current events) Edit View Insert Format Tools Table

## Step 1<br />The concept of scarcity is a fundamental principle in economics. It refers to the situation where the demand for a resource exceeds its supply. In the context of an energy crisis, scarcity is the limited availability of fossil fuels and inadequate energy infrastructure.<br /><br />## Step 2<br />The scarcity of energy forces the government to make an economic decision on how to prioritize energy distribution among residential, industrial, and public services. This decision-making process involves weighing the benefits and costs of each option and determining which sectors are most critical for the country's development.<br /><br />## Step 3<br />The scarcity of energy can influence the behavior and choices of individuals, institutions, and society. For example, individuals may be forced to reduce their energy consumption due to high costs or limited availability. Institutions may need to find alternative energy sources or improve their energy efficiency. Society may need to adapt to changes in energy availability, such as increased reliance on renewable energy sources.<br /><br />## Step 4<br />The long-term impacts of an energy crisis on economic development can be significant. For example, high energy costs can lead to increased inflation, reduced economic growth, and decreased competitiveness in the global market. Additionally, the lack of energy infrastructure can hinder the development of new industries and technologies.<br /><br />## Step 5<br />Scarcity can also be applied to other real-world situations that impact individuals, institutions, and societies. For example, the scarcity of water resources can lead to water shortages, which can impact agriculture, industry, and daily life. The scarcity of food can lead to food insecurity, which can impact health and well-being.