Why do Econ models miss the importance of critical resources?? They overemphasize the importance of margins. But a low margin resource can be critical to the economy. A better metric to determine resource importance is price inelasticity.
You learn what is really important when a price spikes even when supply only slightly decreases, like with gas, or rare earths.
I recommend the book “Material World” by Ed Conway about the most important resources our society runs on.
Why do Econ models miss the importance of critical resources?? They overemphasize the importance of margins. But a low margin resource can be critical to the economy. A better metric to determine resource importance is price inelasticity.
You learn what is really important when a price spikes even when supply only slightly decreases, like with gas, or rare earths.
I recommend the book “Material World” by Ed Conway about the most important resources our society runs on.