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concept of scarcity

As you are getting ready for your first day of work, you realize that you have several options of how to get to the bank on Wall Street. You could drive your car and look for street parking, or you could park in a parking garage. You might even take a taxi or the subway. You must get to work, so time is scarce. Then again, you are also on a limited budget, so money is scarce. Explain the trade-offs between any three of these options. In other words, what will you gain, and what will you have to give up if you choose each of the three options? Is there another option you have not considered? How does this relate to the concept of scarcity in economics? Demonstrate a basic understanding of the concept of scarcity and the economic implications.

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In the case of driving my car, taxi or subway. Driving my car might give me more flexibility, the marginal cost might be low in terms of gas, but parking is likely to be expensive, whether it is in the street or in a parking garage. In addition, I run the risk of finding the streets congested which could ...

Solution Summary

The concept of scarcity is exemplified.