Changes

==Scarcity==

==Scarcity==

“Scarcity” in economics refers to anything that is not free, and which costs at least something to obtain.  Air is not scarce, but almost everything else is "scarce" in economics because it costs money.  There is a scarcity of oil and gasoline, for example.  Gas costs money because its supply in refined form is limited, and the high demand for the limited supply drives up its price.  Drinking water is scarce also in some areas of the world, such as western states like Arizona and California.

“Scarcity” in economics refers to anything that is not free: it is anything that costs at least something to obtain.  Air is not scarce, but almost everything else is "scarce" in economics because it costs money.  There is a scarcity of gasoline, for example.  Gas costs money because its supply in refined form is limited, and the high demand for the limited supply drives up its price.  Drinking water is scarce also in some areas of the world, such as western states like Arizona and California.

Economics is about "scarce" goods and services, which is almost everything.  Economists would say that television shows are scarce, while most of us would not ordinarily say that.  Economists would say that junk food is scarce, while most of us would say there is too much it.  Economists would say that fatty foods are scarce, even though that sounds odd.  All these things cost money, and are not free (in the case of television, the "cost" to viewers includes the time they have to waste watching advertisements).

Economics studies "scarce" goods and services, which is almost everything.  Economists would say that television shows are scarce, while most of us would not ordinarily say that.  Economists would say that junk food is scarce, while most of us would say there is too much it.  Economists would say that fatty foods are scarce, even though that sounds odd.  All these things cost money, and are not free (in the case of television, the "cost" to viewers includes the time they have to waste watching advertisements).

The reason for the broad definition of scarcity in economics is to include any good or service that can be bought and sold.  If an item is so plentiful that everyone’s needs are fully satisfied, then there is no market to buy or sell it (e.g., air).  Once a price can be put on a scarce good or service, then some are not willing to pay for it.  Often people will not be able to obtain all of the good or service that they want.  They may be better off without it (e.g., fatty desserts at restaurants), but economists don’t care how scarcity may make people better off.

The reason for the broad definition of scarcity in economics is to include any good or service that can be bought and sold.  If an item is so plentiful that everyone’s needs are fully satisfied, then there is no market to buy or sell it (e.g., air).  Once a price can be put on a scarce good or service, then some are not willing to pay for it.  Often people will not be able to obtain all of the good or service that they want.  They may be better off without it (e.g., fatty desserts at restaurants), but economists don’t care how scarcity may make people better off.