Natural resource shortages

Definition

Natural resource shortages refer to a situation where there is a limited supply of essential resources, such as water, oil, or minerals, relative to the demand for them. This scarcity can lead to higher prices and potential economic disruptions.

Related terms

Resource depletion: Resource depletion occurs when natural resources are used up faster than they can be replenished. It often leads to shortages and environmental concerns.

Supply shock: A supply shock refers to a sudden and significant change in the availability of key resources or inputs that disrupts the normal functioning of an economy.

Scarcity: Scarcity is the fundamental economic problem of having unlimited wants and needs in a world with limited resources. It underlies natural resource shortages and drives economic decision-making.