The basic economic problem finds that demand is infinite whilst resources are scarce:Infinite Demand + Scarce Resources = The Basic Economic Problem Demand refers to a consumer wanting to buy a particular good/service. Total demand (in an economy) is often infinite due to consumers’ infinite wants. We always seem to want more. Scarcity is the principle that resources are finite. And so, when you combine an infinite demand for scarce resources, you bring about the basic economic problem. The closest we can get to solving this problem is to try and suffice demand as much as we conceivably can. This is done through supplying goods/services to consumers.
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