Choice in a World of Scarcity. Common goods that are overpriced yet consumer continue to
buy them. Scarcity is the idea that all resources are limited and that people and society as a
whole have unlimited wants, which those limited resources could never suffice. Scarcity affects
consumers because people have to choose what goods or services that
fits their standards best within a limited amount of options/resources. For example, a person
would purchase expensive face products because that fits their standards best given the limited
available products sold in the store.

During the decision making process, consumers also face
opportunity cost. Opportunity cost is a result from scarcity. The concept of opportunity cost for a
consumer is that it is the cost of the next best alternative. Since everyone faces scarcity,
opportunity cost is inevitable when making choices. The opportunity cost of
buying high-end face products is the possibility of finding a cheaper alternative. However, an
opportunity cost of buying cheaper face products is that it most likely would not work as best as
the expensive one and results from using cheaper products may not be as promising compared
to luxurious versions of it. Further more another opportunity cost of buying cheaper face
products would be the greater risk of acquiring skin irritation since often cheaper products use
cheaper materials. Thus why a person may choose to buy expensive face products instead of
cheaper ones because they do not want to take the risk of having skin irritations or other issues
that would then lead them to more money spent since they have to find something else that
would not irritate them.

Choice in a World of Scarcity

The theory of rational behavior or assumption of rationality affirms that
economically, anything that increases the benefits and decreases the costs of some action
increases the possibility of an individual to choose that action (the opposite is true as well).
Since I choose to buy expensive face products, does not mean that my decision was not rational
or that it did not meet the principle of rationality. Instead of thinking of it that way, a person may
choose to buy luxurious face products instead of cheaper ones because it fits their standards
best and it allows them to get the maximum benefits to satisfy their concerns, and therefore they
will not have to buy or find multiple cheaper products to meet their desires.

Lastly, the concept of marginal analysis states that when choosing a person should consider the additional benefits
and the additional cost of the same activity, and their decision often convey that the benefits
outweighs the cost. A marginal analysis indicates that it would
cost less to get nice skin with luxurious beauty products than going to a professional to do the
same thing. Meaning the consumer gains marginal benefit by attaining nice skin with a less
expensive price, outweighing the costs of going to a dermatologist or professional treatment. APA style