Crisis Management Update2021-07-26T16:45:07-04:00

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1510, 2021

Don’t confuse shortage with scarcity

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With all this talk about shortages we feel the economic meaning of a shortage is getting lost. Shortages are a function of prices. Specifically, a shortage means that at a given price the quantity demanded of a good exceeds the supply of the good. Further, shortages should not be confused with scarcity.

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