Essay on Geography: Money and Market Response Model

Submitted By rush109192
Words: 315
Pages: 2

The market response model displays laws of supply and demand in which resource availability and scarcity are key (Robbins et. al 2008). This model seems to be ever more apparent in today’s society with the crash of the economy. For example, more people buy generic brands than name brand products because it’s essentially the same exact product and there is no reason to spend more money. Today, we see a scarcity of money circulating in the economy. This new term “Freegans” has emerged because of scarcity. These people essentially go through dumpsters at stores at the end of each day to find the food that is perfectly fine but a day old so the store cannot sell it (Dowdey, 2010). As the economy rebounds and new “sources” of economic rebuilding are found, demand will once again increase and our old spending and consuming habits will replenish. Scarcity is very important when debating economics versus the environment. It is difficult or nearly impossible to place a monetary value on “pieces” of nature like “rivers” or “air” because these essentially intangible objects cannot just belong to one person in particular. If a river is given a price tag, someone will buy that river, call it theirs, and treat it as they wish. With the limited natural resources left on earth, selling these pieces of nature only helps one single person, and hurts the rest of the population. To own a piece of nature, the owner must pay, get value from it, keep it clean and charge other…