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Why is the economic concept of scarcity a crucial concept for businesspeople to understand

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User Iana
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Scarcity is probably the most crucial concept in Economics. If a thing is almost Universally anf freely available no one will be willing to pay for it. Like Air. But if only a limited amount of something can be produced or made available within a reasonable level of cost the thing becomes 'scarce' and people are ready to pay for it. Cost is usually decided on the basis of demand and supply.
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User Frederike
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