Answer to Question #273070 in Microeconomics for Gangaraju

Question

How to shop keeper utilize the limited resources to fulfill her needs

Answer 1

An individual's wants are typically limitless, but the resources available to meet them are scarce, resulting in scarcity. Because resources are limited, scarcity refers to a scenario in which demand for resources exceeds availability. As a result, a shopkeeper will be forced to choose between a variety of options for allocating scarce or limited resources. That is, how should limited resources be allocated to meet all essential needs and as many wants as possible? This entails determining which requirements are crucial and prioritizing them in a logical way. As he progresses down the list, he attends to the most pressing requirements first. As a result, the small shopkeeper will prioritize the most important needs before moving on to less important ones.