Theory of scarcity dating

04-Dec-2015 08:35 by 7 Comments

Theory of scarcity dating - Taiwan adult web cams

An economic theory which states that limited supply, combined with high demand, equals a lack of pricing 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 example, individuals will not be able to attain their basic needs.

When a product is scarce, consumers are faced with conducting their own cost-benefit analysis, since a product in high demand but low supply will likely be expensive.

This means that the consumer should only take action and purchase the product if he or she sees a greater benefit from having the product than the cost associated with obtaining it.

Scarcity Principle Description | Research | Example | So What?

| See also | References In our need to control our world, being able to choose is an important freedom.

If something becomes scarce, we anticipate possible regret that we did not acquire it, and so we desire it more.

This desire is increased further if we think that someone else might get it and hence gain social position that we might have had.

Stephen Worchel and colleagues offered subjects cookies in a jar.

One jar had ten cookies in and the other jar had two.

Subjects preferred the cookies from the jar with two in, even though they were the same cookies.