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Scarcity, choice, and rationality

Scarcity, choice, and rationality

Flowchart showing scarcity leading to consumers maximising utility and firms maximising profit, then to demand, supply, and market outcomes

Scarcity means resources are limited but wants are unlimited, so consumers and firms must choose. Economists call these decision makers economic agents.

1.2.1 Rational decision making Lesson

  1. A Level
  2. /Economics
  3. /1.2.1 Rational decision making