Peter Lim, Author from Citibank on His New Book
Imagine just having $1. The price of 1 apple cost $1. The price of a Kiwi cost $1 as well. If you decided to by the apple, the opportunity cost is the Kiwi and vice versa.
Wants are desires to own or do something. For example, you may want a Ferrari. Needs on the other hand are basic requirements for human survival like water, food and shelter. There is more demand for products or services that are needs as compared to wants.
Wants vs Needs
Scarcity is defined as a condition of limited resources, where society does not have sufficient resources to produce enough to cater to all of the wants.
After inflation, your dollar does not go as far as it did in the past. If the inflation rate is 2% annually, then theoretically a $1 bar of chocolate will cost $1.02 in a year from now.