Changes

Free market competition handles issues of scarcity extremely well, because it can find lower-cost substitutes over time, which drives down the costs to the public.  For example, cheaper and better plastic was used instead of these metals during that period.

Free market competition handles issues of scarcity extremely well, because it can find lower-cost substitutes over time, which drives down the costs to the public.  For example, cheaper and better plastic was used instead of these metals during that period.

== Beware of Exaggerated Scarcity ===

=== Beware of Exaggerated Scarcity ===

Beware of fake scarcity as a way of increasing price.  The "collectors' edition," the "limited offers," and the "only one left," are all slogans designed to create the appearance of scarcity in order to create higher prices.  People want things they '''''think''''' are scarce and limited in supply, such as gold, and are willing to pay more for it.  Another example of an exaggeration of scarcity is when someone spends more time and money looking for something he lost -- because he exaggerates its value -- than the item costs to buy new.  The lost item becomes very scarce in the mind of the person looking for it, but its real value is usually much less than that person thinks.

Beware of fake scarcity as a way of increasing price.  The "collectors' edition," the "limited offers," and the "only one left," are all slogans designed to create the appearance of scarcity in order to create higher prices.  People want things they '''''think''''' are scarce and limited in supply, such as gold, and are willing to pay more for it.  Another example of an exaggeration of scarcity is when someone spends more time and money looking for something he lost -- because he exaggerates its value -- than the item costs to buy new.  The lost item becomes very scarce in the mind of the person looking for it, but its real value is usually much less than that person thinks.