Answer to Question #94015 in Microeconomics for Sherry A Thomas

Question

What is scarcity

Answer 1

Scarcity refers to the gap between the limited resources and the unlimited needs desired to be achieved.  The limited resources include limited time, limited abilities, or the limited goods or services which are needed to achieve the end desired. In such situation, individuals are required to make decisions on how to efficiently allocate these limited resources, in order to satisfy the basic needs as well as other additional wants.