How can we satisfy everyone’s wants?
There are 1,000 tickets available for the match and 20,000 people want to buy the ticket
School can give admission to 100 students but 600 students applied for admission
What are the two examples which I have given you?
The two examples show that even if the people have the financial ability to get something, they do not get what they want because the supply or the resources to produce the things are limited. Economists have been persistently encountering this problem. The problem is that no matter what we do we can never satisfy everyone’s wants. So to minimize this problem Economists manage their resources to in the most efficient way. This problem might have not existed if the people’s wants did not increase, but the wants will keep increasing and it would be impossible to satisfy everyone’s wants.