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In this case it's a good estimate of scarcity, unlike air, land is property
by rubber_duck 8y ago
In this case it's a good estimate of scarcity, unlike air, land is property
- simonh 8y agoNot necessarily. If there is 110% as much food as people need food can be cheap, the surplus has little to no value. The price is making not determined by infrastructural constraints and personal preferences. But if there is 1% less food than people need the price will suddenly go through the roof. We see this with oil prices. The price across the demand/supply balance point is nothing like linear.
- rubber_duck 8y ago>But if there is 1% less food than people need the price will suddenly go through the roof. There are plenty of mechanism to stabilize the price, plenty of alternative ways to produce food as price increases just like with Oil