What is concept of scarcity and why people make choices in their best interests?

Scarcity is the economic concept that describes the finite availability of resources to meet the infinite wants and needs of people. People make choices in their best interests because of the limited nature of resources.

Individuals must choose between wants and needs due to limited resources. For example, a person may want to buy a new car, but needs to pay for rent and food, so they must choose which is more important.

Individuals must prioritize certain needs over others due to limited resources. For example, a person may need to buy a new laptop for work but also need to pay for medicine, so they must prioritize which is more important.

Individuals must determine the best use of their resources due to limited supply. For example, a person may have a limited amount of money to spend, so they must decide which items they need to purchase with that money.

Individuals must decide how much to spend on each item due to limited funds. For example, a person may need to buy a new laptop and a new car, but they must decide how much they can afford to spend on each item.

Individuals must choose between different options due to limited resources. For

Without competition, firms may become complacent, leading to lower quality products and services.

Thank you for reading. Create summary videos with Kimavi.