Scarce resources

Please write a review on each discussion. please keep separate. 1. While there are a number of different ways to allocate scarce resources, there are a few that standout the most to me. One way is to use market price, this allows sellers who are able to afford and are willing to pay the price to buy the scarce resources necessary for their product. This puts some at a disadvantage because of the fact others may not be able to afford these resources due to the higher market price. Another way of allocating scarce resources could be first come first serve. The first come first serve method allows those who are proactive to access the scarce resources first, just like the saying, "if you snooze, you lose." Lastly, there is the command method. While this method seems to be unfair, it allows organizations with more authority than the rest to access the scarce resources. Those at the bottom of the food chain, so to speak, are last in line to receive these resources because of their lack of authority. All three of these allocating methods have an impact on the markets themselves, each and every one can affect quantity demanded, equilibrium price, and quantity supplied. The market price method can most definitely affect the price of a product, because the resources used are scarce. This method allows businesses that are more affluent than the rest to receive these scarce resources. Quantity demanded definitely rises when scarce resources are being used to create a product or service. With minimal resources comes a higher demand as well as lower quantity supplied. 2. The three methods of allocating scarce resources I picked were: Market price, First come, first served, and Lottery. Market price is people who are willing and able to pay the price get the resource. First come, first service is people who are first in line that get the resource. And Lottery is those who are randomly selected winners that receive the resource. These allocation methods can affect quantity demand/supplied, and equilibrium price by how well they work, or not work. For example Market price works well in a competitive market and for most goods and services. But will not work well when those who cannot buy items that others may highly value is not handled well by market price method and is usually deal t with by one of the other allocations. First, come, first served works well when a resource can be used by only one user at a time. But don’t work well such as allowing those based on who applied first. Lottery normally works when there is no way to easily distinguish which user of the resource would use it most effectively. Lottery does not work when assigning based on random chance. Market price is more efficient then my other two choices because it achieves when the quantities of goods and services produced are those that people value most highly. Allocative efficiency is when quantities of goods and services are produced for those who are able to buy it, however you cannot produce more of a good or service without giving up some of another good that people will look at as highly favor.