Scarcity is Not a Shortage

Media Type: Office Hours Topic: Supply & Demand, Marginal Thinking

In this video I dispel one of the misconceptions that students have about the term scarcity. Students often think that because something is scarce there is a shortage of it. However, economists use the term scarcity to refer to any condition in which a good is not freely available in nature. As a result, goods that are scarce can be abundant. 

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