What does the phrase “scarcity makes resources valuable” mean?

The less there is of a desired item the more costly it is to buy it. For example, dirt and grass outside your home is not very valuable because it is created naturally every day, it is an unending supply. read more

Increasing the supply creates excess supply at the initial price, which causes the quantity demanded to increase which in turn causes prices to fall. Therefore, an infinite supply would mean that the price value would always be zero. This is why scarcity makes resources valuable; because there is a limited supply, price will always be non-zero. read more