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LONG-RUN INDUSTRY SUPPLY CURVE: The relation between market price and the quantity supplied by all firms in a perfectly competitive industry after the industry as completed its long-run adjustment. The long-run industry supply curve effectively traces out a series of equilibrium prices and quantities the reflect long-run adjustments of a perfectly competitive industry to demand shocks. This long-run adjustment can take one of three paths: increasing, decreasing, and constant. These three adjustment paths indicate an increasing-cost industry, decreasing-cost industry, and constant-cost industry, respectively.
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                           SCARCE: A condition in which a given good or resource is limited relative to its desired uses. This is a special condition of the general condition of scarcity. A scarce good or resource is typically exchanged through markets and carries a positive price. Most goods, services, resources, and any other commodities that come to mind are scarce. They might be expensive, they might be cheap, they might be abundant, or they might be extremely rare. If they are exchanged in markets, are used to satisfy wants and needs, or play almost any role in the economy, then they are probably scarce. Being scarce means a commodity cannot satisfy all existing wants or needs.Compared to ScarcityBeing scarce is a special condition of the pervasive problem of scarcity. The two terms are related, but have slightly different meanings. Scarcity means that society is generally faced with unlimited wants and needs, but limited resources. Scarce means that this condition is applied to a particular commodity, that is, the uses of the commodity are limited relative to the amount available.- Scarcity is the general condition of unlimited wants and needs, but limited resources, faced by society.
- Scarce is the specific condition of a limited quantity relative to the desired uses faced by a particular commodity.
What About Free?The alternative to scarce is free. A free good, service, resource, or other commodity results if the quantity available exceeds the desired use. In other words, there is more than enough to go around, to meet all needs at a zero price, with some left over. Air is the best example. With few exceptions (sunken submarines, orbiting space vehicles, locked bank vaults) the quantity of air exceeds existing uses. Plenty of air is available. This abundance means that the price is zero and that a market cannot be established. Should anyone attempt to sell the commodity at a positive price, potential buyers can simply acquire the good elsewhere for free. Compared to ShortageA market shortage arises if the quantity of a good demanded is greater than the quantity of the good supplied, at a given price. This is a specific condition of the market brought on because the going market price is less than the market-clearing equilibrium price. Having a market shortage is not the same thing as being scarce.A good or resource is scarce if it is limited relative to the desire use, at a zero price. In other words, there is not enough of the good or resource available to satisfy all uses. A market shortage, in contrast, exists if the current price is below the market clearing price. However, should the price rise, a shortage can quickly disappear. The shortage can even turn into a surplus. Whether the market for a good has a shortage or surplus is unrelated to being scarce. A scarce good or resource can have a shortage, or a surplus, or neither. In fact, a good or resource is necessarily scarce if it is traded through a market.
Recommended Citation:SCARCE, AmosWEB Encyclonomic WEB*pedia, http://www.AmosWEB.com, AmosWEB LLC, 2000-2025. [Accessed: November 11, 2025].
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Today, you are likely to spend a great deal of time lost in your local discount super center wanting to buy either a remote controlled ceiling fan or a how-to book on home decorating. Be on the lookout for poorly written technical manuals.
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In 1914, Ford paid workers who were age 22 or older $5 per day -- double the average wage offered by other car factories.
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MCA
Monetary Control Act of 1980
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