WE NEED TO LIMIT OUR
WHAT IS SCARCITY ? CHOICES
ECONOMICS
The demand for a good or
service is greater than the
availability of the good or
HHW TOPIC-
service.
DETAILS ABOUT SCARCITY :
SCARCITY
Limited resources - human
wants are unlimited but the
resources to fulfil them are
limited in nature.
Prioritise our wants - due to the
lack of resources or limitation
of resources we need to
priorities our wants in order to
give others chance to fulfil their
needs.
Supply and Demand: Scarcity
influences the law of supply
and demand. When a good or
service is in limited supply, its there is never
price tends to rise as demand
exceeds supply. Conversely,
enough of
when supply exceeds demand, anything to
prices tend to fall.
fully satisfy
all those who
want it.
BY - AYAN KHAN
MY VIEWS
From this, I learned that we PROS AND CONS OF SCARCITY
must save resources and use
Innovation: Scarcity drives innovation and technological advancements. When resources
them as per our needs as once are scarce, there is a greater incentive to develop new technologies and methods to
Gandhi Ji said, "There is produce more with less, leading to increased efficiency and productivity.
enough for everyone's need but
Efficiency: Scarcity promotes efficiency in production and consumption. Individuals and
not for everyone's greed". This businesses strive to minimize waste and make the most of available resources, which can
statement matches with reality lead to higher productivity and reduced costs.
because human wants are
unlimited and the resources to Rising Prices: Scarcity often leads to increased demand for a limited supply of goods
and services, causing prices to rise. This can lead to inflation, making it harder for
fulfil them are limited but if we individuals with limited incomes to afford basic necessities.
prioritise our wants then we
can save resources for future Environmental Impact: The drive to extract and utilize resources more efficiently in
response to scarcity can sometimes result in overexploitation of natural resources and
generations without any environmental degradation.
problem and everyone can get
the opportunity to use those
resources.
How digitisation has been introduced in the scarcity
Digitisation has played a crucial role in addressing scarcity in various ways:
1. Digital storage: Scarcity of physical space for storing documents and records has been
mitigated through digitisation. By converting physical files into digital formats, organizations can
store a large volume of data in a compact digital format, reducing the need for physical storage
space.
2. Online platforms: Digitisation has enabled the creation of online platforms that connect buyers
and sellers, reducing the scarcity of access to goods and services. E-commerce platforms, for
example, have made it easier for people to buy products from anywhere, overcoming
geographical limitations.
3. Digital communication: Scarcity of communication channels has been addressed through
digitisation. Digital communication tools like email, instant messaging, and video conferencing
have made it easier for people to connect and communicate across different locations, reducing
the scarcity of timely and efficient communication.
Overall, digitisation has introduced innovative solutions to address scarcity by optimizing resource
utilization, improving access, and providing alternative channels for communication and exchange.
