Foundations of Economics
| Institution | UNIVERSITY |
| Course | BACHELOR OF ECONOMIC... |
| Year | 1st Year |
| Semester | Unknown |
| Posted By | Brian Mike |
| File Type | |
| Pages | 89 Pages |
| File Size | 2.93 MB |
| Views | 7331 |
| Downloads | 0 |
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Description
People have unlimited wants but resources are
limited.
Scarcity is a naturally occurring limitation on the
resource that cannot be replenished
Because of scarcity, various economic decisions
must be made to allocate resources efficiently. A shortage occurs whenever quantity demanded is greater than quantity supply at the market price. Over time, the good will be replenished and the
shortage condition resolved.
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