BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Scarcity is one of the key concepts of economics. 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.

Detailed explanation-2: -According to the scarcity principle, the price of a good, which has low supply and high demand, rises to meet the expected demand. Marketers often use the principle to create artificial scarcity for a given product or good-and make it exclusive-in order to generate demand for it.

Detailed explanation-3: -Resource scarcity occurs when demand for a natural resource is greater than the available supply – leading to a decline in the stock of available resources. This can lead to unsustainable growth and a rise in inequality as prices rise making the resource less affordable for those who are least well-off.

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

Detailed explanation-5: -Demand-induced scarcity reflecting rising demand. Supply-induced scarcity caused by diminished supply. Structural scarcity attributable to mismanagement or inequality.