Understanding Scarcity and Choice

The Power of Scarcity — Why We Can’t Have It All Have you ever wanted

something — maybe a new phone, a vacation, or even just more time in your day

— but couldn’t have it all? That feeling of limitation is the heart of one of

the most powerful ideas in economics: scarcity. Scarcity means that resources are limited,

while our wants and needs are unlimited. There’s only so much time, money,

land, and labor to go around. Because of that, societies,

businesses, and individuals all face the same problem — how to make choices.

Imagine you walk into a store with $10 in your pocket. You can buy a sandwich and a drink… or