Overview
Scarcity is a core concept in economics that highlights the limitations of resources in fulfilling human desires. It compels individuals and societies to make choices about how to allocate their limited resources effectively. Understanding scarcity is crucial for making informed economic decisions, ...
Key Terms
Example: Water scarcity in drought-prone areas.
Example: Choosing to spend money on education instead of a vacation.
Example: The supply of oranges in a market.
Example: High demand for electric cars due to environmental concerns.
Example: The price of a product stabilizing when supply meets consumer demand.
Example: Choosing to save money instead of spending it on entertainment.
Related Topics
Supply and Demand
The relationship between the availability of a product and the desire for that product.
intermediateEconomic Systems
Different systems that societies use to allocate resources and distribute goods.
intermediateMarket Structures
The organization of a market based on the number of firms and the nature of competition.
advancedKey Concepts
limited resourcesopportunity costsupply and demandeconomic choices