Prices paid for economic resources?

Question

Prices paid for economic resources?

Answer 1

In economic theory, you never have a shortage of anything. What you have is a higher price that balances supply and demand. If supply is reduced, the price goes up but there is no shortage. Shortage implies that someone who wants to buy the resource can not obtain it. In a well functioning market, anyone can buy the resource if they are willing to pay for it.

For example, people often ask what will happen when the world runs out of oil. Oil will never run out in the physical sense, but production may decline. The price will then increase to balance demand with the reduced supply

Answer 2

Property resources-rent and interest

Human resources-wages

Both-opportunity cost