Respond to this discussion Scarcity creates limited options and opportunities, when there is a low/limited supply of goods and or services, consumers and sellers are not able to fully decide their options. Which creates lots of lost gains. That being the definition of opportunity cost, the lost of gain when another alternate choice is chosen. An example of this is, if you are an artist that sells your work and your most popular pieces sold have this specific purple color. But that color is now not being made and now you have to use a dull version of that color, your potential costumers that only want your pieces with that color must look elsewhere for art or will pay less for your pieces. In this case both parties lose, the artist doesn't sell there work or for less and the consumer doesn't get the piece they originally wanted