From the producer's perspective, explain the imbalances of resources and desires in economics.

Expert Answers

An illustration of the letter 'A' in a speech bubbles

The imbalance of resources and desires is the same thing as scarcity; this is the fundamental economic problem.  It applies to producers as much as to consumers.

All producers need to use resources to make their products.  Ideally, they would like to make unlimited numbers of goods so that they could make more money.  But this will not always be possible because the resources that they make their products with are limited.  To take one example, oil is something that almost all producers need.  However, there is only a limited amount of oil available at any one time.  Consumers and producers all compete for that oil, driving prices up.

Producers always want more resources than they can have.  This is the fundamental problem of economics.

Approved by eNotes Editorial Team

We’ll help your grades soar

Start your 48-hour free trial and unlock all the summaries, Q&A, and analyses you need to get better grades now.

  • 30,000+ book summaries
  • 20% study tools discount
  • Ad-free content
  • PDF downloads
  • 300,000+ answers
  • 5-star customer support
Start your 48-Hour Free Trial