32 AGRICULTURAL ECONOMICS 



while in the long run the supply of farm crops depends upon the 

 activities of man, it is also true that variations in seasons and 

 the attacks of pests influence greatly the supply produced in 

 any one year. The acreage of a given crop is in the control of 

 man, but the production per acre is in so large a measure de- 

 termined by the weather that the total production in any one 

 year is very uncertain, hence the degree of scarcity of farm 

 products in a given season is in a large measure the result of 

 natural forces beyond the control of man. 



The degree of scarcity of economic goods is in many cases 

 influenced by men who are in aj position to limit the supply with 

 a view to demanding a price higher than would prevail under 

 competitive conditions. Scarcity created in this way is called 

 monopoly scarcity. Monopolies arise out of natural con- 

 ditions and out of laws granting patents, trademarks, copy- 

 rights, etc. The occasion of monopoly is not the size of the 

 business or the character of the organization, but the essential 

 unity of control. Unity of control makes it possible to limit 

 supply in such a manner as to command a price which will 

 yield maximum total profits for the monopolists. It is in this 

 sense that we speak of monopoly scarcity. 



Economic goods may be scarce because of an absolute limi- 

 tation on the supply, that is, there is no way of increasing the 

 supply. Absolute scarcity may be permanent or temporary. A 

 beautiful picture painted by an artist who has passed away has 

 been given as an example of absolute scarcity which is per- 

 manent. Here there is no chance of increasing the supply of 

 originals at any time. 



Absolute scarcity may exist temporarily in many farm prod- 

 ucts. This is a matter of great interest to the farmer. When the 

 wheat crop of the United States and Canada has been harvested, 

 nine months pass before the supply can be increased from this 

 source. If the supply is not enough for the normal demand, 

 prices tend to rise and the demand fall until there is a balance 

 between the supply and the demand. The prospect for a new 

 crop may be unusually good, but the new crop to be harvested 

 in July cannot be used in June. The supply of old wheat is 



