Discussion board topic: Can anyone think of problems not fundamentally caused by scarcity?

Also discussion of any relevant current events or questions regarding material.

All students must post at least once for Module 1 and posts will be evaluated using the discussion rubric.

After reading the discussions I understood that I was not the only one that could not think of problems not fundamentally caused by scarcity. The first thing that came to mind was supply and demand. If there is a shortage of supplies results in having a high demand resulting an increase of prices, and in there is a surplus of supplies results that the demand decreased and prices will lower due to the low output. They both end up having “scarcity” because whether there are not enough supplies for consumers or there is a surplus scarcity has an effect on the situation. But I do not think that scarcity by itself can cause inflation, there has to be more factors that will cause inflation. For example, recently we had a shortage on eggs that caused the price to increase but it did not we did not result with inflation. It takes more than one item at your local super market to increase its prices to result with inflation, by the time all the groceries increase its prices the government would recognize the inflation. The increase on the price on the eggs would not cause the consumer to run out of money not to purchase groceries, it would simply be scarcity.

I think scarcity has an affect on a majority of things, but not inflation.