Economy, asked by o9nypretwmariafaron, 1 year ago

"Only scarce goods attract price " comment

Answers

Answered by nlokhande
35
Scarce goods means, goods or items that are either low or insufficient. These can be due to many factors such as low production, weather loss, transport strike, low availability of raw materials, or just plain low availability of resource in nature itself. Some of these reasons are man-made and some are natural. 

In either case, regardless of availability, population is ever increasing. Increase in population means there is increase in demand. For example, Imported foods such as Avocado or Kiwi are expensive in India as these are not grown in India and thus needs to be imported in country. Thus here demand is constant but supply is not as much as it should be which makes this good as scarce and increase the price (this is also a man-made price increase to a considerable extent). 

Another example would be, Diamonds. These are hardest material on earth and is one of the most expensive gem. 
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