Quote from: FirstAscent on September 14, 2011, 03:24:15 AM

Because I want to give you the chance to exercise your mind.

How about you exercise your manners?

Quote from: FirstAscent on September 14, 2011, 03:24:15 AM

Recall that we are discussing scarce natural resources, the operative term being scarce. Scarcity implies that only a very small subset of the population can afford the resource, and that subset is the very wealthy.

That's not how most economists use the term "scarce".

Quote from: FirstAscent on September 14, 2011, 03:24:15 AM

Although the price of the natural resource is astronomical to the average person, it is affordable to the wealthy. As scarcity increases, it's demand relative to supply does not necessarily decrease proportionally. It would if all consumers had the same wealth, but that is not the case.

Who said anything about proportionally? That's your straw man, not mine. It depends on how elastic the demand is. However, it's very much the case that as price increases even the most inelastic demands will find substitutes.

Quote from: FirstAscent on September 14, 2011, 03:24:15 AM

Harvesting determines supply. A significant increase in the scarcity of a natural resource drives the price higher. This makes harvesting more appealing.

Only if demand is fixed, which it never is. As the price goes up, the demand goes down. Focusing solely on the fact that the price is higher neglects the fact that there is a lower demand. Do the math. If a million people want to buy something at ten dollars profit per unit but only one person wants to buy the same thing at one million dollars profit per unit, you make more profit but setting your price at ten dollars. Price is not the only variable. It's also quantity demanded at that price. This is basic economics.

Quote from: FirstAscent on September 14, 2011, 03:31:07 AM

Quote from: bitcoin2cash on September 14, 2011, 03:04:50 AM

You've got it backwards actually (See: http://en.wikipedia.org/wiki/Supply_and_demand).

No. You have it backwards. I've already explained it to you. Recall that I said you're applying the supply/demand curve inappropriately? Try reading what I've written. Need a hint? Read the article you've posted. It's all in there. Here's your hint: Ceteris paribus.

Let me know when you have a point to make.