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This 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 sup
by NateLawson 16y ago
This 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.