SCARCITY Generally human beings have got unlimited needs and wants. No class or of people who have enough of everything. The resources to satisfy those growing needs are limited. These resources are commonly referred to as factors of production which include land, labour, capital and entrepreneurs. These resources are not enough to satisfy the growing needs and wants which lead to a problem of scarcity concept as an economical problem which is not easily avoidable (Mukherjee S, 2003). Scarcity of resources is having less than the society demand of the goods and services it simply means limited in supply with exception of very few free things like air and sunlight though even the air may be polluted causing air borne diseases.
(Mukherjee S, 2003). Scarcity does not choose who to be affected whether rich or poor rather affects everyone at individual levels of wants and needs. This raises another problem now on how to economize the available limited resources with unlimited wants which further raises more questions on what to produce with limited resources, how to produce with limited resources in order to meet the demand for the desired products and services and how to meet different needs of various categories in the entire society (Maunder P, Myers D, Wall N, Miller R L, 2000)Scarcity creates a need to make a choice.
Most of these problems faced in the entire society are created by the scarcity of resources. If resources were enough to everyone anyone particular time then there could not have been any economic problem faced by the society at large. Scarcity gives rise to more complexities as more questions on what to produce or how much quantities are needed and by whom comes into question.
The alternative choice available brings more problems on how to allocate the scarce resource to the particular needs equitably. This becomes a big problem to the economist. (Mukherjee S, 2003). Different methods of production may be differential from one another by the quantities of resources used to produce them. In order to meet scarcity requirements, efficient and effective method of producing must be employed in order to avoid waste and reduce cost may be by applying the best technology methods.
Then another question follows as to whom these goods and services should satisfy. The question of distribution and marketing comes in as to how to distribute these goods and services to different members of the community, like the rich and poor marketers use all kind of languages to show effects of scarcity on the value of commodities and they cleverly use phrases like ’’only while supplies last. ’’ Just to show how scarcity is dominant in the society. (Martin E, 2008)Scarcity does not affect only the available resources but even others like time.
Individuals find themselves most of the times affected by time constrain. Accordingly to Karau S J and Kelly J R, (2004), time limit was inversely related to the amount of task taken by group performance and the quality of presentation. EFFECTS OF SCARCITY ON IDIVIDUALGenerally scarcity of goods & services affects individuals differently. The rich may go for whatever price of goods selling at the market while the poor shall be forced to make a choice on the most needed commodities going up to the luxurious goods & services.
Alternatively they may forego some goods in order to get others which is the opportunity cost incurred. Individuals are guided by the size of their income.