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Relative Scarcity
Relative scarcity occurs because resources are finite, while our needs and wants are infinite. In other words, resources are scarce relative to demand (compared with absolute scarcity which means that a good is not available at all).
Opportunity Cost
The value of the next-best alternative that is forgone when a decision is made.
Consumer Sovereignty
This is the idea that it is consumers who influence production decisions. Firms will respond to consumer preferences and so produce the goods demanded by consumers.
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