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(pedantic) For a physical object, scarcity isn't inherently an artificially inflating factor. Enforced scarcity is a different matter. (/pedantic)
by mikemol 16y ago
(pedantic)
For a physical object, scarcity isn't inherently an artificially inflating factor. Enforced scarcity is a different matter.
(/pedantic)
- NateLawson 16y agoThis doesn't make sense. Whether scarcity is enforced or natural, it's the demand & supply that drives the price inflation. The reason for scarcity (lack of supply) does not come into play during a static economic analysis. It's only in a dynamic analysis that the "enforced" part comes into play, usually because it is easier to get around artificial scarcity than discover new resources (natural scarcity).
- mikemol 16y agoScarcity is a natural property of supply, which is a natural factor of price. As a property without inherent artificial component, scarcity cannot artificially affect price without said scarcity itself being given an artificial component such as being purposefully controlled to that end.