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If something is scarce, it means that there is a certain shortage or lack of supply. The game of Economics is affected because the law of supply and demand are the most important elements in the subject of economics itself.
Within a free market scarcity is either effected on one of two levels.
1. Increased demand through
* popularity (trends) * increase in population (birthrates) / population density (rural to urban) * increase in purchasing power of the average person
2. Depletion of supply
* Disruption of production through man-made or natural disasters * Changes in economic conditions alters spending habits Scarcity inevitably increases the demand either through the supply or demand of a product and this increases the cost for the good as people are willing to pay more to get something.
Large corporations that hold large % of the commanding heights of an economy thrive off scarcity. The commanding heights are the resources which drive our primary industries such as oil, coal, lumber, copper and food.
Scarcity = record profits for companies that have not slowed their production.
Thus exon recorded record profits during 2008 when the price of fuel was at an all time high
If a product is abundant and available to everyone at an extremely low cost, who would pay for it? How could you build an industry around it? You couldn't! Many great inventions have been buried because of this, our economic structure ensures those who can provide a scarce product lots of wealth.
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Which of the following accurately describes the effect of a situation of scarcity?
Theres a shortage of oil, pushing car companies into researching alternative fuels
What statement accurately describes a significant effect of globalization?
Improvements in technology made international communication easier.
What is the issue of scarcity of natural resources?
One issue that can spring from scarcity of natural resources is economic. When items are scarce, the price for those items goes up. Oil is a good example of this effect.
What describes the substitution effect?
As the price of a good rises, people will substitute other products.
What effect does scarcity have on the price of a product if demand stays the same?
The scarcer the product, the higher the price.
Which of the following accurately describes the effect of a situation of scarcity?
Theres a shortage of oil, pushing car companies into researching alternative fuels
Describes the effect of a situation of scarcity?
There's a shortage of oil, pushing car companies into researching alternative feuls.
What best describes the effect of a situation of scarcity?
There's a shortage of oil, pushing car companies into researching alternative fuels. APEX
What statement accurately describes a significant effect of globalization?
Improvements in technology made international communication easier.
What are the effect of scarcity?
death by dehydration
What accurately describes an important effect of the Columbian exchange on the indigenous people in the Americas?
Huge numbers of indigenous peoples were wiped out by European diseases.
What accurately describes an important effect on the Columbian exchange on indigenous people in America?
Huge numbers of indigenous peoples were wiped out by European diseases.
What statement accurately describes a significant effect of globalization in the 20th century?
It has allowed cultures to spread quickly and easily from one country to another.
Which sentence most accurately describes the effect of background noises such as crying or fighting background music in a radio news segment?
It creates a gloomy feeling - APEX
Ask us of the following accurately describes the effect of Lincoln's assassination in 1865 on Reconstruction?
Reconstruction was harsher toward freed slaves than Lincoln envisioned it.
What is the synergistic effect?
The synergistic effect describes a situation in which organic structures interacting results in an overall effect greater than the sum of all of the individual effects. This term can be applied to chemical substances or living organisms.
Potato crops in Idaho have been damaged by plant disease causing a scarcity of potatoes in the market. What is the most likely effect of the scarcity?
Price increase
