The Rising Costs of Scarce Natural Resources

The video discusses the historical and current economic trends of natural resources like lumber and oil. It highlights how certain types of lumber, such as redwoods, were once inexpensive but have become costly due to scarcity. Similarly, it explains that oil production is stabilizing and may decline, leading to increased costs unless new resources are found. The video emphasizes that when the cost of a natural resource becomes too high, its usage diminishes.

What factors contributed to the increase in lumber prices compared to 100 to 200 years ago?

Why are redwood trees considered extremely costly today?

How does the current situation with oil production compare to the historical context of lumber?

What might happen to the usage of a natural resource if its cost becomes extremely high?

Discuss the implications of resource scarcity on pricing and availability.