Madhu has  Rs 50,000 with her and she wants to buy an AC, fridge, bicycle etc. with it. As her wants are unlimited but resources to fulfill the wants are unlimited, according to you which economic problem is she facing right now?

Problem of choice

Madhu has Rs. 50,000 with her (resources) and wants to buy AC, fridge, bicycle etc (unlimited wants). Madhu can either buy AC or fridge or bicycle. That means she has to make a choice. So, we can say that when there are unlimited wants and the resources are limited, it gives rise to problem of choice.