These examples highlight the local nature of scarcity and price. A good's price is determined by its supply and demand and is time and place specific. We can easily conclude that in heaven, prices and scarcity do not exist, but the scarcity on earth creates a price. | These examples highlight the local nature of scarcity and price. A good's price is determined by its supply and demand and is time and place specific. We can easily conclude that in heaven, prices and scarcity do not exist, but the scarcity on earth creates a price. |