Question

Economic goods are goods which are limited in volume compared to their demand

Answer 1

Hey frnd

The scarcity principle is an economic theory in which a limited supply of a good, coupled with a high demand for that good, results in a mismatch between the desired supply and demand equilibrium. In pricing theory, the scarcity principle suggests that the price for a scarce good should rise until an equilibrium is reached between supply and demand. However, this would result in the restricted exclusion of the good only to those who can afford it. If the scarce resource happens to be grain, for instance, individuals will not be able to attain their basic needs.

Hope this helps u frnd