How do the concepts of scarcity and utility factor into a product's value?

Scarcity is a fundamental problem in economics. It is the gap between the scarce resources, that are limited and the wants, which are limitless. In the presence of scarcity, resources should be allocated in a way which does not temper the economic growth and development in the long run. When there is scarcity, which means that there is a lack of availability of resources, supply will be lower than the total demand in the economy. This excess demand will increase the value of products in the economy as the more people want the product which has limited supply.

The utility is the total satisfaction a consumer is getting from consuming a product. Consumers aim to maximize their total utility. It is the willingness of a consumer to pay for a product. If the willingness to pay for a particular product is increased, then people will be willing to pay more for the same amount of goods. So, this increase in willingness will increase the demand and hence, the product's value.