simple example of scarcity rent.
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Land – a shortage of fertile land for populations to grow food. ...
Water scarcity – Global warming and changing weather, has caused some parts of the world to become drier and rivers to dry up. ...
Labour shortages. ...
Health care shortages. ...
Explanation:
Scarcity rent is the cost of "using up" a finite resource because benefits of the extracted resource are unavailable to future generations. Efficiency is achieved when the resource price--the benefit society is willing to pay for the resource today--is equal to the sum of marginal extraction cost and scarcity rent.
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The gasoline shortage in the 1970's. ... Coal is used to create energy; the limited amount of this resource that can be mined is an example of scarcity
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