Answer:
- It exists because resources are scarce.
- It influences producers.
- It influences consumers.
Explanation:
It exists because resources are scarce:
It is very unrealistic to say that the resources are unlimited as it is impossible to produce such a huge number of resources. So keeping this mind, people have to decide which resource they want to make use of.
It influences producers:
Decisions about what products are to be made by the producers that they plan to make for consumers.
It influences consumers:
Consumers also have to keep in mind their limited resources while spending.
