Introduction

• A resource is something that is useful in the condition in which we find it.
• In its raw or unmodified state, it may be an input into the process of producing something of value, or it may enter consumption processes directly and thus acquire value.

Scarcity:

• The scarcity means simply that the amount available is limited relative to amount demanded.
• Any resource with positive price must be scarce: if its availability were unlimited relative to demand, it would be free.