How does scarcity affect customers?
(1 point)
Responses
Limited wants and needs limit customers to small purchases.
Limited wants and needs limit customers to small purchases.
It encourages strong economic growth
It encourages strong economic growth
Limited time prevents customers from making decisions.
Limited time prevents customers from making decisions.
Limited money and resources forces consumers to make choices.
Limited money and resources forces consumers to make choices.
Limited money and resources forces consumers to make choices.
Scarcity refers to the limited availability of resources, goods, and services in relation to unlimited wants and needs. This scarcity has a direct impact on customers. Here are a few ways in which scarcity affects customers:
1. Limited wants and needs limit customers to small purchases: When resources are scarce, customers may have to settle for smaller quantities or cheaper alternatives. For example, if a certain product is in high demand but there is a limited supply, customers may only be able to purchase small quantities of it or opt for a lower-priced alternative.
2. It encourages strong economic growth: Scarcity can result in increased demand for goods and services, which can lead to economic growth. Businesses may expand production in order to meet the demand, which in turn can stimulate the economy, create jobs, and provide more options for customers.
3. Limited time prevents customers from making decisions: In some cases, customers may have limited time to make purchase decisions due to scarcity. For example, limited-time offers or sales create a sense of urgency, encouraging customers to make quick purchasing decisions before the opportunity vanishes.
4. Limited money and resources forces consumers to make choices: When resources are scarce, customers are forced to make choices and prioritize their spending. Customers must evaluate the available options and decide which ones are most important or necessary for them. For example, if a person has limited funds, they may have to choose between purchasing a new phone or going on a vacation.
It is important to note that the impact of scarcity on customers can vary depending on the specific circumstances and the individual's personal preferences, financial situation, and needs.