Hello friends, I am here today with few real time life experience to explain the term “Scarcity value principle”. Let's start discuss without any further delay.

I hope you all think the same, if you had siblings this examples will be easy to connect with your day to day life.

Example 1

When we have so many chocolates we don't think about the quantity and used to share with everyone without any worries.

But when the quantity of chocolate is less and number of persons increases the chocolate will be shared to some people only and few won't get that chocolate. So that the demand for chocolate will be raised at this case. The demand for chocolate in this case which is not sufficient to share among everyone is known as Scarcity Value principle.

Example 2

When we had a bottle of soft drink, the taste of first sip is more as we taste it for the first time, but we will feel the scarcity value as the soft drink was consumed by us and it keeps decreasing. 

When we share a bottle of soft drink with our siblings, we used to choose the largest glass but it's not sufficient for us and we always used to think that one of our siblings got the huge amount even we got more quantity than others.

I met demand for books recently and so searched for this principle behind the demand and scarcity. Our teachers informed us to get books from our senior so that we all reached our seniors and they said that they only having few books. So our classmates planned to buy books for half rate and so the cost of books were increased as ourself developed the demand for that books and so I planned to buy my books from book shops directly.

So we can say that the value of the product Increased as the demand for the product gets boomed. 

I hope you understood this concept and search for many options before suffer because of demand.

In large scale, the demand can be supplied by proper analysis of production and distribution.

Today is my first day college as a third year student and I met a staff from my department as a subject staff for the first time. I was inspired by his words, I hope that he will be my one of the favourite teacher at the end of my studies. I will share a blog about him in future.

Thankyou friends.