BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -It means that the demand for a good or service is greater than the availability of the good or service. Therefore, scarcity can limit the choices available to the consumers who ultimately make up the economy. Scarcity is important for understanding how goods and services are valued.

Detailed explanation-2: -Scarcity is what underpins all of economics, which is one interpretation of why economics is sometimes referred to as the dismal science. Humans are constantly making choices that are determined by their costs and benefits.

Detailed explanation-3: -According to the psychologists, social proof and commitment are the underlying concepts of scarcity principle. Based on social proof, there is often a high tendency that people see a scarce product as a product of higher quality.

Detailed explanation-4: -Scarcity falls into three distinctive categories: demand-induced, supply-induced, and structural.

Detailed explanation-5: -Scarcity, or limited resources, is one of the most basic economic problems we face. We run into scarcity because while resources are limited, we are a society with unlimited wants. Therefore, we have to choose. We have to make trade-offs.