What Is Scarcity
Scarcity is a term that is derived from inequality between delivery and demand. There is no doubt that scarcity can occur in case of short supply and increasing demand. Scarcity can be considered in reference to any product or services. Shortage of delivery can occur when manufacturers are unable to meet increasing demands of customers just because they are availed with limited quantity. Lack of raw material put an impact on scarcity level like human population as well as land. There are some more items or products that are necessary but does not included in the category of scarce resources because of their abundance such as air. You can explain scarcity as level of requirement, necessity or need of an item or product that leads to the increment of value and concludes demand of a particular item.
You can also take example of crude oil that is a commodity found naturally. No doubt, crude oil is highly demanded in almost every country for numerous purposes and especially in the form of fuel. Increasing demand of different forms of crude oil is followed by increasing pressure on its limited resources. It becomes compulsory to evaluate the concept of shortage when you think that product is not distributed uniformly in different parts of the world and unable to fulfill requirements of every individual. It can also happen that a resource is plentiful in one country and scarce in another. Application of shortage is valid when it put an impact on the development of any country.
Some developed countries are rich in natural resources of crude oil and hardly face scarcity of related products. You must be aware of the fact that crude oil is an important resource for every country and it becomes compulsory to make a proper check on the value and enabling cause of commodity to overlook collision in “demand and supply”. Countries having limited value of any resource consider it as scarce product that further leads to increase in the price of product. Dishonest manufacturers as well as suppliers subjugate relationship between value and shortage in order to earn revenue. You can clearly observe this connection in diamond industry where scarcity of product resulted in increased price that is beyond the reach of common people. Scarcity is a restraint occurring naturally and depends upon the availability of product or good. The best part is scarcity can be a temporary constraint and can be avoided in case of sufficient accessibility of resource. Scarcity can be termed as an economic problem outcome of which is hard to surmount. Scarcity that is also known as shortage can vary with the product type and their impact on the choices of consumer.