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On Value related to Need and Scarcity

By Bernard

We had learned about the economic value, about the goods and wealth, about our unlimited needs and the scarcity in our limited world.  It's time now to link all these notions together.

The relative scarcity is the scarcity of the ressources needed to fulfill our needs of the goods and services.  So, water is abundant in Québec, not very scarce in any desert.  But the use vaue of water is the same everywhere.  The difference comes from the exchange value, which comes for the scarcity of it.

Over the time, we also know that water is not as good now than it was a century ago;  pollution makes drinking water more scare, even in Québec.  Our ancestors had the same use value of water, but the exchange value is bigger now because of the scarcity of clean drinking water.

The different values according to the need and scarcity
Value Big need Small need
Extreme scarcity High value Negociable value
Abundance Negociable value No economic value

When we have big needs and that these goods are scarce, their value is very high.

When our need is not important, but the good is easily available, the economic value is almost zero.

In the other cases, with average scarcity and average need, the value will be negociated by the economic agents, buyer and seller.