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Here, You're going to learn about the relation between scarcity and economics. First and Foremost, scarcity is when demand for a good and service is more than the availabilty of the good or service. Scarcity has to do with limitations. For example, if the price of a good has low supply and high demand, the price rises to meet the expected demand. LIMITATIONS!

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This website talks about how scarcity is an economics concept embedded in one of the most basic facts of life: our world has limited resources and many choices are made on how this resources are to be used- opportunity cost. Some times, we think natural resources (clean air and a sustainable climate) are free and unlimited and often overuse or deplete them hence making them scarce and leading to tragedy.

I chose this website because it helps us understand the fundamental principles of scarcity and how it relates in our day to day lives.

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What Is Scarcity?

Scarcity is an economics concept rooted in one of the most basic facts of life: we live in a world of limited resources that requires choices about how they are allocated. In that sense, every product down to a pack of gum or a book of matches is scarce, since someone expended resources that could have been deployed elsewhere to produce it.

Scarcity is so fundamental to economics that scarce goods are also known as economic goods. In economics, scarce goods are those for which demand would exceed supply at a price of zero.

Some natural resources that may appear to be free because they are easily and widely accessible eventually prove scarce as they are depleted from overuse in a tragedy of the commons. Economists increasingly view clean air and a climate compatible with human welfare as scarce goods because of the significant cost of protecting them, and may place a price on them for the purposes of a cost-benefit analysis.

Understanding Scarcity

In his 1932 Essay on the Nature and Significance of Economic Science, British economist Lionel Robbins defined the discipline in terms of scarcity:

Economics is the science which studies human behavior as a relationship between ends and scarce means which have alternative uses.

In a hypothetical world in which everything of value-from food and water to masterworks of art-were so abundant it had no cost, economists would have nothing to study. There would be no need to make decisions about how to allocate resources, hence no need for theories about the interplay of such decisions and tradeoffs in an economy.

In the real world, on the other hand, all factors of production have a cost and therefore so too does every product. Every input incurs an opportunity cost because it can't be put to alternate use as a result. This opportunity cost reflects the inputs' scarcity.

Natural Resource Scarcity

Even abundant common resources long consumed at zero apparent cost often prove neither free nor limitless eventually. Climate isn't a tangible asset and its value is hard to calculate, but the costs of climate change for companies as well as the society are all too real. Air is free, but clean air has a cost in terms of the economic activity discouraged to prevent pollution, as well as value for health and quality of life.

To preserve the benefits associated with these resources, governments may require manufacturers and utilities to invest in pollution control equipment, or to adopt cleaner power sources. Governments and the regulated industries eventually pass on these costs to taxpayers and consumers. Breathing freely, in other words, is not really free.

Relative Scarcity of Inputs

While scarcity is fundamental to economics and the human condition, the term is also used to describe the relative availability of factors or production or economic inputs.

For example, imagine a hypothetical widget requiring just two labor inputs: workers and managers, with one manager required per 20 workers. Imagine further that the available labor pool consists of 20,000 workers and 5,000 managers. Clearly, there are more available workers than managers. Yet in terms of the proportion required to produce the widgets, workers are the relatively scarce resource, since they're required in a ratio of 20 per manager for production, but outnumber managers by a ratio of only 4 to 1 in the labor pool.

The factors of production compared this way could just as easily be land and dairy cattle. If pasture land were the limiting factor in milk production, land could be said to be relatively scarce. Conversely, if the principal production constraint was the size of the herd, cattle would be the relatively scarce factor of production.

Scarcity as Market Mover

Scarcity may also be used to denote a change in a market equilibrium raising the price of the resource based on the law of supply and demand. In those instances, scarcity denotes a decrease over time in the supply of the product or commodity relative to the demand for it.

The growing scarcity reflected in the higher price required to attain a market equilibrium could be attributable to one or more of the following:

Demand-induced scarcity reflecting rising demand

Supply-induced scarcity caused by diminished supply

Structural scarcity attributable to mismanagement or inequality

Does Scarcity Mean Something Is Hard to Obtain?

Are There Goods That Are Not Scarce?

How Can a Society Deal With Scarcity?

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Scarcity: What It Means in Economics and What Causes It

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Scarcity refers to the most basic economic problem: the gap between limited-that is, scarce-resources and theoretically limitless wants.

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On this website, we understand scarcity principle as economic theory in which a limited supply of a good or service with high demand equals in a mismatch between the desired supply and demand equilibrium. in other words,it explains the price of a good. Marketers always use the principle to create fake scarcity for a certain product or good making exclusive in order to generate demand for it hence raising prices. When a product is scarce, consumers are faced with conducting their own cost-benefit analysis; a product in high demand but low supply will likely be expensive.

I chose this website as it helps us understand the scarcity principle in depth and how it ralates to our economy and prices

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What Is the Scarcity Principle?

The scarcity principle is an economic theory in which a limited supply of a good-coupled with a high demand for that good-results in a mismatch between the desired supply and demand equilibrium.

The scarcity principle is related to pricing theory. According to the scarcity principle, the price for a scarce good should rise until an equilibrium is reached between supply and demand. However, this would result in the restricted exclusion of the good only to those who can afford it. And if the resource that is scarce happens to be grain, for instance, individuals will not be able to attain their basic needs.

Understanding the Scarcity Principle

In economics, market equilibrium is achieved when supply equals demand. However, the markets are not always in equilibrium due to mismatched levels of supply and demand in the economy. This phenomenon is referred to as disequilibrium. When the supply of a good is greater than the demand for that good, a surplus ensues. This drives down the price of the good. Disequilibrium also occurs when demand for a commodity is higher than the supply of that commodity, leading to scarcity and, thus, higher prices for that product.

For example, if the market price for wheat goes down, farmers will be less inclined to maintain the equilibrium supply of wheat to the market (since the price may be too low to cover their marginal costs of production). In this case, farmers will supply less wheat to consumers, causing the quantity supplied to fall below the quantity demanded. In a free market, it can be expected that the price will increase to the equilibrium price, as the scarcity of the good forces the price to go up.

When a product is scarce, consumers are faced with conducting their own cost-benefit analysis; a product in high demand but low supply will likely be expensive. The consumer knows that the product is more likely to be expensive but, at the same time, is also aware of the satisfaction or benefit it offers. This means that a consumer should only purchase the product if they see a greater benefit from having the product than the cost associated with obtaining it.

Special Considerations

Scarcity Principle in Social Psychology

Consumers place a higher value on goods that are scarce than on goods that are abundant. Psychologists note that when a good or service is perceived to be scarce, people want it more. Consider how many times you've seen an advertisement stating something like this: limited time offer, limited quantities, while supplies last, liquidation sale, only a few items left in stock, etc.

The feigned scarcity causes a surge in the demand for the commodity. The thought that people want something they cannot have drives them to desire the object even more. In other words, if something is not scarce, then it is not desired or valued that much.

Marketers use the scarcity principle as a sales tactic to drive up demand and sales. The psychology behind the scarcity principle lies on social proof and commitment. Social proof is consistent with the belief that people judge a product as high quality if it is scarce-or if people appear to be buying it. On the principle of commitment, someone who has committed themselves to acquiring something will want it more if they find out they cannot have it.

Example of Scarcity Principle

Most luxury products, such as watches and jewelry, use the scarcity principle to drive sales. Technology companies have also adopted the tactic in order to generate interest in a new product. For example, Snap Inc., unveiled its new spectacles through a blitz of publicity in 2016. But the new product was available only through select popups that appeared in some cities.

Tech companies may also restrict access to a new product through invites. For example, Google launched its social media service, Google Plus, in this manner. Robinhood, a stock trading app, also adopted a similar tactic to attract new users to its app. The ridesharing app Uber was initially available only through invites. The idea behind this strategy is to place a social value on the product or service and leverage the idea of exclusivity.

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Scarcity Principle: Definition, Importance, and Example

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The scarcity principle is an economic theory in which a limited supply of a good results in a mismatch between the desired supply and demand equilibrium.

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No sector is immune to the scarcity problem. On this website, we learn about how scarcity of workers affected the agricultural sector in canada during the pandemic. The pandemic’s impact on food supply chains was relatively short-lived, but there is a longer-lasting crisis : Canadian agriculture is experiencing a chronic skills and worker shortage that is threatening its ability to function, let alone reach its full potential. Canadians or people in general, don’t often think about the journey our food takes to reach our tables – until it doesn’t get there. The empty shelves of supermarkets during the pandemic forced many Canadians to reflect on the source of their food and to seek out food producers who could supply them with their next meal.

I chose this website as it shows how the people in charge can help mitigate the scarcity problem in the agricultural sector because according to this website, labour gap is projected to expand.

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Consumers don't often think about the journey our food takes to reach our tables - until it doesn't get there. The barren shelves of supermarkets during the pandemic forced many Canadians to reflect on the source of their sustenance and to seek out food producers who could supply them with their next meal.

The pandemic's impact on food supply chains was relatively short-lived, but there is a longer-lasting crisis looming: Canadian agriculture is experiencing a chronic skills and worker shortage that is threatening its ability to function, let alone reach its full potential.

The harder truth is that this labour gap is projected to expand.

According to a new labour market information report from the Canadian Agricultural Human Resource Council (CAHRC), more than 100,000 jobs in agriculture - nearly one in every three jobs in the industry - are projected to be vacant by 2030 unless strong action is taken to attract, retain and properly equip our agricultural workforce.

This will require the attention of federal and provincial decision-makers with collaboration from educators, career development experts, agriculture industry representatives and employers. Together, they will need to examine and implement a wide range of available solutions including immigration, technology advancements, education and public perceptions of agriculture.

An industry-led initiative has already started this process through the national workforce strategic plan for agriculture and food and beverage manufacturing.

What's needed now

This approach, led by CAHRC in partnership with the Canadian Federation of Agriculture and Food and Beverage Canada, has brought more than 100 stakeholders to the table, and many more as champions of the process.

One of the main reasons for the anticipated labour shortage is that 85,000 workers in the agriculture sector are expected to retire in the next six years. Other factors include the cost of living and the location of rural workplaces, lack of awareness of careers in agriculture, misconceptions surrounding wages and the unavoidable seasonality of work.

The potential negative impact is huge.

Imagine, for a moment, a future where the country's agriculture sector doesn't have the workers or businesses it needs - where crops rot in fields because there's no one to harvest them, where there are not enough abattoirs to process meat and poultry, and where your favourite cereal doesn't make it onto store shelves because there's no one to package it.

That sounds extreme, but it comes closer to becoming a reality every year - unless appropriate changes are made.

In 2022, an estimated 28,200 agriculture jobs went unfilled during peak season. Sixty-two per cent of these vacancies were concentrated in crop production. Two out of every five employers in primary agriculture and support services reported they couldn't find enough workers to operate at full capacity.

The extent of labour shortages varied across sub-sectors, driven by differences in skill requirements, geographical location and seasonal patterns. But no employer - whether it's running a fishery or an operation in poultry and egg, dairy, field crops, beef, floriculture or beekeeping - is immune to the challenges of recruitment and labour retention.

It's important to note that these shortages carry other implications beyond food security. The CAHRC report says lost sales due to worker shortages amounted to $3.5 billion in 2022 - a substantial number considering profits for primary agriculture amounted to only $21.9 billion in the same year.

Almost $93 billion of Canadian agriculture's $143.8 billion contribution to GDP in 2022 came from agricultural and processed food exports. The labour and skills gap should be understood as an economic issue as much as it is a food security issue.

So, where do we go from here?

This is a multi-faceted issue, so the CAHRC report includes a suite of recommendations.
Immigration
The federal government plans to welcome more than 1.45 million newcomers over the next three years. They bring diverse skill sets, many of which are desperately needed in the agriculture sector.

Foreign workers and immigrants are integral to the agricultural workforce. Of the 100,000 jobs predicted to be vacant by 2030, 71,000 jobs could be filled by foreign workers. Previous CAHRC research has identified newcomers as a demographic most open to pursuing a career path in agriculture.

To facilitate new Canadians' entry into the agricultural workforce, Canada needs to be able to attract people with relevant skills and experience. It also needs to ensure immigrants are encouraged to settle in rural communities where agricultural work primarily takes place.

This could involve offering employment, education and cultural integration support programs in rural areas, not only for potential workers but also for their spouses and children. Ideally, this would be a collaborative effort of immigration policymakers, settlement agencies and employment development professionals.
Education and awareness
Another recent CAHRC study found that students have limited exposure to the agriculture industry. Initiatives to help schools increase awareness include integrating agriculture-related subjects into curricula, organizing field trips to agricultural operations and partnering with local agricultural businesses to offer internships and apprenticeships.

Work placement programs for post-secondary students can also strengthen connections with the agricultural sector, not only for Canadians but for international students, 60 per cent of whom stay in Canada after gaining work experience during their studies.
Apprenticeships
Canada needs to develop apprenticeship programs to promote skilled trades in agriculture. This will not only boost the sector's reputation but also emphasize the technical and specialized skills which are needed.

There may be an opportunity to expand to other trades through the Red Seal Program, which offers certification for agricultural and heavy-duty equipment technicians.

At the provincial level, supporting and expanding organizations that create apprenticeships, such as the Nova Scotia Apprenticeship Agency, Skilled Trades Ontario, Young Agrarians and the Stewards of Irreplaceable Lands, could help build a more qualified workforce.
Knowledge sharing
CAHRC research shows a demand for partnerships between smaller operations and larger agricultural entities to facilitate knowledge sharing and provide training on best human resources (HR) practices.

Nearly one-third of small operations said they would like to receive training from industry associations to address their HR needs more effectively. The report notes 34 per cent of workers said they stay in agriculture because of good management practices.

This figure tells us a few things. First, best practices in HR play an important role in worker retention. Second, there's an opportunity to further help employers so that a larger portion of our future workforce attributes positive experiences with people management and good HR practices as a top reason they choose to stay in the sector.
Innovating
Finally, with the rapid advancements of technologies that enhance productivity and competitiveness, it will be imperative to continue innovating in the workplace and to ensure there is a skilled workforce to operate and maintain these systems.

A concerted effort among industry, skills development organizations, policymakers and education experts will be crucial to ensuring that the workforce possesses the necessary skills and expertise to work alongside advanced agricultural technologies.

No time for complacency

From immigration to skills training and education, these key recommendations have been informed by stakeholders across the country who are primary producers, as well as food and beverage manufacturers, educational institutions, producer groups, industry associations and government officials.

Given this widespread support and consensus for comprehensive solutions, there is no excuse for complacency. Canadian consumers deserve action, and so do agriculture employees and employers. Our food security and economic future depend on it.

Do you have something to say about the article you just read? Be part of the Policy Options discussion, and send in your own submission, or a letter to the editor.

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Canadian worker shortages could cause food shortages

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No employer - whether a fishery or poultry and egg, dairy, field crops, beef, floriculture or beekeeping - is immune from the challenges.

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This website highlights the emerging water crisis for Canadians as they can no longer be assured the waters are abundant, safe and secure. As glaciers melt, permafrost thaws, river flows become unpredictable and lakes warm and fill with toxic algae due to rise in global temperatures. Science is telling us that the rate at which water moves through the water cycle is accelerating, which is fundamentally changing weather and precipitation patterns. Evidence of such change in Canada is mounting with frequent wild fires.

I chose this website as it shows how canada is bodly losing its cool and shows how this water scarcity is going to affect a great deal of canadians in the near future.

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According to this video, several reports are casting doubt to the idea that Canada is facing wide spread labour shortages as job vacancies only seem to be available in positions that need little to no education e.g. agriculture sector and no one wants to work there due to long hours and low hourly wages.

I chose this video because it's precise and includes statistics and reasoning on what's really behind Canada's labour shortage.

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A city in North canada imposed a state of emergency as it went 3 days with drinking water scarcity which led to the price of bottled water to rise to 9dollars. this scarcity was caused by infiltration of water by petroleum hydrocarbons- missuse of natural resources as well as pollution of the environment.

I chose this video as it clearly shows what happens when we misuse natural resources leading to water scarcity in the country

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Around 8,000 people experience drinking water crisis in Canada | Latest English News | World News

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In this video, we see that the entire field of economics is based on the idea of scarcity. And, arguably, we wouldn't even need a field of economics, if there wasn't

the notion of scarcity in the world. Scarcity means that there's not enough of something to go around.

And the reason why scarcity is essential

to economics is because economics is the study

of how do you allocate these scarce resources.

If there's more demand for it than the amount of thing that there is, well, who gets it, how much of it do they get, and what do they have to give up in exchange to get those scarce resources?

I chose this video as this helps us understand scarcity in depth and has day to day example of how scarcity applies to economics

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Scarcity | Basic economics concepts | Economics | Khan Academy

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More than half of Toronto’s residents are born outside Canada, and that number could soon explode. By 2025, Canada’s government hopes to bring in nearly one and a half million immigrants to fill critical jobs; something business leaders have been pushing for years. There's a health care crisis going on in this country and an increase in immigration could impact the economy both negatively and positively.

I chose this video because it interviews people and they all give their views on immigration and how it qould impact the country's economy

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Canadian government makes immigration push to fill labor shortage

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There is a water shortage going on in the country and although this a wealthy country, many First Nations people do not have access to clean water; they’re still waiting for that apparent luxury. the economy relies on first nations people so the don't deserve to live with water scarcity issue

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This graphic shows how there is a widespread of labour shortages across the country as businesses are contantly hiring. labour shortages impact the economy negatively as there will be low productivity and high demand.

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1. What did you learn about your topic that surprised you the most?

Learning that the field of economics is hugely based on scarcity and that common resources like clean air and a sustainable climate have been increasingly recognized as scarce yet they are considered as free natural resources surprised me the most.

2. Provide a real-life example of how this topic is relevant or interesting for you.

I'm going to talk about stanley cups. These cups really have nothing special to them but wierdly cause an uproar on tiktok as suddenly everyone gained interest in them. before the tiktok uproar, these cups costed about $20. as demand increased for these cups, they became scarce and hard to find, the price increased too. currectly they cost about $70. they increased the price to lower the demand.

3. If you could pass on your knowledge to a family member or friend, what do you think is the most important thing to pass on?

I'd pass on that scarcity is a basic economic problem and every product in the world is considered scarce as someone expended resources that could have been deployed elsewhere to produce it.