Scarcity

And finance Allah shmoop What is scarcity Oh diamonds gold

oil Oscar winning actors These things are scarce Well a

handful of beats sand a box of garbage An alley

cat You have things Things are not scarce But what

a scarcity even mean in economic terms All right let's

back up a bit Basic forces of economics supply and

demand Well the fundamental pricing action in an economy lies

in figuring out how to distribute Limited resource is basically

finding a way to get supplying two man in tow

balance Yeah remember that graph This one right here Supply

demand And here's why Base wife Right So that's the

theory Okay People want stuff like hamburgers They get angry

and need comfort food and or fuel and or calories

masquerading as love Joe six Pack wants his burger demands

it So yes that's demand And someone provides the stuff

like supplies it like Freddie the fry cook and that's

applied in the middle You get crisis which helped match

and meter and measure The metrics are of Scarcity III

where supply hooks up with demand Everything is relative or

contextual right A bottle of water in the middle The

desert can be worth a hundred bucks that same bottle

in Kawai Hawaii where it rains five inches a day

not so much so in contact When there's a lot

of supply and limited demand Prices are low People might

love hamburgers but there are a lot of them around

a lot of supply They aren't scarce and all the

ingredients to a burger well easy to find There are

plenty of sources of all beef patties special sauce lettuce

cheese pickles onions and plenty of wheat and you know

sesame seeds to make the sesame seed buns there Yet

tons of suppliers easy to make their called commodities a

good or service that's more less the same wherever you

biden in whatever form you receive it in But there's

no significant scarcity of hamburgers so prices are relatively low

in this sense There aren't infinite burgers but compared tto

amber with the dinosaur blood in it and Olympic gold

medalists and no brilliant honest Congress People Yeah Hamburgers aren't

really scare So what is scarce How about beachfront property

Everyone to live in a mansion in Malibu Yeah This

little baby will set you back a cool twenty mil

in this one eighty mil beachfront property in a good

location is rare supplies very limited But everyone anywhere near

the coast wants to live there There's huge demand for

this scarcely supplied resource Now technically not all beachfront property

is expensive but remember Three Mile Island you have this

thing easy pickings But if you want to live by

the beach in California without nuclear waste well you're going

to have to pay up competing with other rich people

willing to shell out millions and millions for a close

up view of movie your flipper or well smog And

note that what scarce today might not always be scarce

or even prized beachfront property in California won't always be

as rare if global warming continues There are a random

new kits Greenland and all that ice sheet melts Well

then here's the U S Map At that point the

ice sheets melted oceans have risen and you remember that

twenty million dollars Malibu home Well that used to be

beachfront Now it's Atlantis and not the cool kind where

you can swim with dolphins or the kind with superheroes

know just bottom of the ocean Formally twenty million dollars

fish habitat Yeah Demand has dropped to zero It's no

longer scarce It's as common as junk on the bottom

of the ocean Which basically is meanwhile with California's new

coastline will land that used to be inland orange and

walnut groves now has a spectacular view of the ocean

Farmer McGee Yeah How about twelve million dollars for a

couple of euro woman acres there by the coast Yeah

I think that one of two carat diamond ring for

your brand new wife Yeah The one who doesn't nag

you daily to take out the garbage Yeah well that

ring's gonna cost you about fifty thousand dollars because well

there aren't many diamonds that big guy either Relatively scarce

and they are desired If you want Cady playing on

your hopes team Well it's gonna cost you about a

quarter unit a season That twenty five million dollars because

you know units hundred million bucks Why Well they're scarce

They're scarce their desired They're not like a hamburger and

their desired by many rich people who bid up pricing

and well that's just how the game is played So

these air today's prices for the intersections of supply and

demand Tomorrow prices will move his attributed values or continually

influx We value something's more today than we will in

the future and all that stuff and I did might

be scarce But that doesn't make it worth a lot

of money Not if demand is low like well the

Shmoop Family Singers song album is scarce and oh so

not desired Yeah there's only one Steven Seagal this fat

bald guy here he used Teo you know be somebody

big action star in the day But he's not getting

Denzel or even Brad Pitiful money These days the values

attributed to scarcity can go the other way to something

that used to be very common can become scarce you

know like a bald eagle about that And if demand

remained flat or steady well these now scarce but demanded

things can become prized So watch out Brad you might

be one of a kind of scarcity doesn't always mean

high value your homies Just one hamburger addiction away from

heading down the Steven Seagal path to oblivion But on

the other side of the coin will maybe put a

burger into your deep freezer just in case Who knows

If it'll be scarce one day if all the cows

were wiped out in a plague you know that mad

cow disease thing is the thing Well Burger's just might 00:05:19.384 --> [endTime] become a scarce resource again