Answer to Question #27977 in Economics for Amanda McKenna

Question

How does the study of economics depend upon the phenomenon of scarcity?

Answer 1

Phenomenon of Scarcity implies satisfying human needs and desires in condition of limited resources. In other words dealing with provision of always increasing demand.
The study of Economics examines utilizing of materials, production efficiency, delivery, distribution and consumption of finished goods and services. That means that Economics immediately relates to satisfying of demand by utilizing and distribution limited resources.
Therefore correlation of demand and supply i.e. scarcity in a company with would availability of resources, production efficiencies and distribution of goods and services i.e. the study of Economics would form appropriate economy system; determine areas for examining, developing economic theories.