Scarcity

A fundamental concept in economics that refers to the limited availability of resources to meet unlimited human wants and needs. It forces individuals, businesses, and governments to make choices about how to allocate resources efficiently.

What You Need To Know

Scarcity impacts pricing, production, and decision-making processes, making it a critical factor in economic systems, business operations, and resource management. The idea that scarcity principle suggests that people value items more when they are perceived as being scarce.