What does the concept of scarcity explain? Check all that apply.

1. why a product could lose significant value over time.
2. why people continue to purchase different products.
3. why consumers are willing to pay high prices for items.
4. why decisions must be made on how to use resources
5. why resources can be both renewable and nonrenewable.
6. why a single resource has more value than another resource.

1. Why a product could lose value over time could lose demand over time relates to supply, demand, and scarcity. Either the supply increases and can fit the demand or there is no demand for it.

3. Why consumers are willing to pay high prices for an item. Someone is only willing to pay a high price for an item if there is little supply and high demand. So for example, is like in a desert with a group of people and bidding over who gets the bottle full of water.

6. Why a single resource has more value than another. Being back to the previous example, in a sandy environment people wouldn't be bidding on who gets the most amount of sand because it's not a scarce resource.