SCARCITY PRINCIPLE
Scarcity Principle is an economic theory. It states that a mismatch in the desired supply and demand equilibrium will occur if there is limited supply of a good with a high demand for that good. In pricing theory, the scarcity principle means that a good limited in supply will inevitably have its prices go up and will continue going up until an equilibrium between supply and demand is achieved. The arising problem with the scarcity principle, however, is that it paves way for restricted exclusion of the good as only those who can afford may buy it. For example, if grain becomes scarce in resource, it means that its price will go up due to its rarity thus only people who can afford would be able to cover basic needs. The rest have to find other resources to replace the basic need.
POPULAR TERMS
Collusion
Trade Credit
Secondary Stock
Maturity Date
Group of 30 - G30
POPULAR ARTICLE
SEE FOREX TUTORIAL
Buying a Home: Everybody’s Goal
Retirement Planning: Maximizing the Power of Compounding
Introduction to Ethical Investing
Getting to Know The Federal Reserve
A Guide to Your Personal Income Tax: Steps to Take before April 15
ECONOMIC CALENDAR
Time | Country | Indices | Period |
---|---|---|---|
08:30 | Producer & Import Prices | Mar | |
11:00 | Industrial Production | Feb | |
14:30 | Manufacturing Shipments | Feb | |
14:30 | Wholesale Sales | Feb | |
14:30 | Retail Sales | Mar | |
14:30 | NY Fed Empire State manufacturing index | Apr | |
16:00 | Business Inventories | Feb | |
16:00 | NAHB Housing Market Index | Apr | |
04:00 | Real GDP | 1 quarter |