Title: 
Headings: Scarcity Definition
Scarcity Definition
Types and Examples
What is Scarcity in Economics
Key Points
Introduction to Microeconomics
Scarcity Economics Definition Expanded
Scarcity and Value
“Scarcity is based upon two factors: the scarcity of our own resources, and that of the resources we want to buy.”
The Diamond-Water Paradox
Types of Scarcity
What is Relative Scarcity
What is Absolute Scarcity
What are the 3 Causes of Scarcity?
1. Demand Driven
2. Supply Driven
3. Structural
Scarcity Examples
Commodities
Fishing
Labour
Land
Natural Disaster
General Scarcity FAQs
Further Reading

Content: People are willing to pay more for diamonds, so they are naturally valued more highly. However, that still doesn’t explain why they are valued more highly than water. After all, we need water to survive. There are several factors that contribute to this, but the two main variables are scarcity and marginal utility. Diamonds are naturally scarce, which gives it its value. By contrast, water is readily available almost anywhere in the developed world. To explain, water is easy to access. We have more than enough to satisfy our immediate needs. Anything beyond our most crucial needs starts to lose value. For instance, after eating a large meal, the value placed on another drastically falls.