A. Scarcity requires some method of rationing to decide who gets the limited amount of goods and resources. C. Competition is the result of scarcity. Competition is a natural outgrowth of scarcity and the desire of human beings to improve their conditions. Competition exists in both capitalistic and socialistic societies.
Competition exists whether goods are allocated by price or collective decision-making.
No society has been able to eliminate competition because no society has been able to eliminate the need for rationing. Competition occurs when people who want more scarce goods seek to meet the criteria established to ration those goods. The market demand schedule. The availability of good substitutes is the most important determinant of the responsiveness of quantity demanded to a change in price. Despite differences in the degree of responsiveness, the fundamental law of demand holds for all goods.