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How does scarcity affect the economic value of products and services?
Wiki User
∙ 10y ago
As something becomes harder to get, the price tends to go up. People are willing to pay a higher price to ensure their supply is not interrupted.
As the price goes up, it makes using alternatives viable. This then stabilizes the price.
For example a rancher may feed his cattle corn. If the price of corn gets too high, he may start buying other grains to feed them or leave them to fatten on grass alone.
The second impact of scarcity is to cause people to permanently change their way of doing things. Rather than run the risk of further shortages, they change the way they operate to eliminate the item.
Wiki User
∙ 10y ago
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How does scarcity affect the prices of goods and services in a market?
Scarcity causes raises in prices, as there is less of a product or service. -Yackna anwsered this
How do changing economic conditions affect the use of financial services?
The change in econonmic condition affect financial services because when there is good economic condition there shall be with good financia services and viceversa is true
How does scarcity affect producers?
Scarcity of availability causes producers to either charge higher prices or to produce more goods and services (like energy production, cars, paper, etc.)
Does the fact that something is abundant mean it is not scarce in the economic sense?
No, not necessarily. The Economic definition of scarcity means that the supply of the resource is bounded. Even something that is abundant is still quantifiable and thus bounded. (I.E. My country gets a good harvest of corn and there is so much corn that the price drops, corn is still scarce - in an economic sense - because it will still run out.) However, love, courage, fear, and other emotions cannot be measured using the economic concepts of scarcity (because these things cannot be bounded) and so the abundance of love does not affect its economic scarcity.
How does scarcity affect the factors of production?
Scarcity is the non-abundance of resources. Resources are needed to produce. Thus, the more that is produced, the more resources are being used.
How does scarcity affect the prices of goods and services in a market?
Scarcity causes raises in prices, as there is less of a product or service. -Yackna anwsered this
How do changing economic conditions affect the use of financial services?
The change in econonmic condition affect financial services because when there is good economic condition there shall be with good financia services and viceversa is true
How does scarcity affect producers?
Scarcity of availability causes producers to either charge higher prices or to produce more goods and services (like energy production, cars, paper, etc.)
Does the fact that something is abundant mean it is not scarce in the economic sense?
No, not necessarily. The Economic definition of scarcity means that the supply of the resource is bounded. Even something that is abundant is still quantifiable and thus bounded. (I.E. My country gets a good harvest of corn and there is so much corn that the price drops, corn is still scarce - in an economic sense - because it will still run out.) However, love, courage, fear, and other emotions cannot be measured using the economic concepts of scarcity (because these things cannot be bounded) and so the abundance of love does not affect its economic scarcity.
How does scarcity affect the factors of production?
Scarcity is the non-abundance of resources. Resources are needed to produce. Thus, the more that is produced, the more resources are being used.
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How internal customer can affect the external customer?
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