In this article, aggregate demand is more important than the aggregate supply of the economy. The shape of the Aggregate Supply curve has been the debate of many centuries between Economists.

One of the motives for a government to impose a tax is to enable producers to compete with overseas trade, thus protecting the home industry. The US pays the most for prescription medicine, due to a large transfer of wealth. Pharmaceutical products are cheaper abroad because companies know they can make money in the US market. Countries in Europe are tougher negotiators which allows them to have low priced pharmaceutical products. The subsidies for health-care in the US are relatively ineffective because Deadweight (welfare) loss is occurring as the total cost of the subsidy outweighs the increase in total consumer and producer welfare, within the country.

The decision Apple made to price the iPhone 5c at $99 on contract price, is seen as the right move due to price elasticity. Although there is expected increase in demand due to the seasonal change of the holiday, Apple decided to take lower margins and hoped for unit volumes to offset as they believed there would have been "no guarantee of price elasticity driving volumes." Off this we can interpret that the price elasticity for the Apple iPhone 5c will be over 1, as they hope that the decrease in price will lead to a greater increase in the demand for the product. They saw the release of the iPhone 5c as having no guarantees as to whether the price elasticity of the product would help generate a greater quantity of sales.

Many scarcity pessimists believe that the world will result in famine and war due to the problem of overpopulation. This article however highlights that the Price Mechanism has worked time and time again to effectively resolve this problem. When the price mechanism is allowed to work, consumption regulates itself and technology provides us with substitutes. The price mechanism is of the utmost importance as it helps allocate scarce resources. It allows for the most efficient use of resources on our planet

Manila, Philippines is currently facing a problem where the demand for jobs is far outpacing the supply admits the labour chief. She explained that jobless growth was not an entirely accurate description of the failure of the robust economy since 2010. Unemployment is growing at a steady rate, nevertheless it does not make the job for the government any easier.

Although this is a rather tenuous link to Scarcity and Opportunity Cost, we can see the scale in which Economics affects our world. The scarcity is the amount of soldiers, money and time, whilst the opportunity cost is the next best alternative foregone, which in this case if Russia decide not to invade Ukraine, is a War between former Soviet Countries.