In this video I dispel one of the misconceptions that students have about the term scarcity. Students often think that because something is scarce that this must mean that there is a shortage of it. However, economist use the term scarcity to refer to any condition where a good is not freely available from nature. As a result, goods that are scarce can be abundant.
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I agree that the price of diamonds is inflated by cartels but they are still quite scarce and unavailable at a zero price.
dmateer 6 months ago
Diamonds are not that scarce; there are cartels that limit the supply to prop up the price but at zero dollars there are plenty of diamonds out there.
JerryKitich 6 months ago