The laws of scarcity have different applications and two main applications are the following:

1. Allocation of resources: The law of scarcity helps to allocate the economic resources optimally. The more the resources are scarce, the more will be the price. A high price will lead to the use of the resources to highly important and non-substitutable work.

2. Artificial scarcity: The law of scarcity is used to maintain the artificial scarcity of a commodity and services in the economy to increase the price of goods and services.