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In economics you can’t have a shortage in a perfect market as you note. Of course most (all?) markets are imperfect so various factors can cause shortages (eg r
by zeroonetwothree 3y ago
In economics you can’t have a shortage in a perfect market as you note. Of course most (all?) markets are imperfect so various factors can cause shortages (eg rent controls is a common example). For labor markets imperfect mobility can cause a shortage.
In common use it means that something costs more than many people are willing to pay for it. So your Ferrari example would be a valid use under this meaning.
- QuarterReptile 3y ago>In common use it means that something costs more than many people are willing to pay for it. More likely it costs far less than people are willing to pay for it. When the Colonial Piepline was shut down for ransomware, the shortage occurred because a reasonable populace correctly assessed that the local value of gasoline had just skyrocketed far beyond its steady state price, so the demand became limited only by time and social costs (e.g. you don't want to be the guy whose picture is shown filling trash bags of gasoline) plus ways to store it.