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- Effects of hoarding in economics include123:
- Preventing or slowing the flow of products or commodities through the economy, leading to scarcity and increased value.
- Creating shortages of goods, potentially causing inflation.
- Affecting economic and material welfare due to non-availability of goods.
Learn more:✕This summary was generated using AI based on multiple online sources. To view the original source information, use the "Learn more" links.Hoarding resources can prevent or slow products or commodities from traveling through the economy. Subsequently, this may cause the product or commodity to become scarce, causing the value of the resource to rise.en.wikipedia.org/wiki/Hoarding_(economics)Hoarding is commonly criticized for creating shortages of goods in the real economy. It is possible for hoarding to create a cycle of speculation, self-fulfilling prophecies, and inflation. If several wealthy individuals start hoarding wheat, the price will begin to increase.www.investopedia.com/terms/h/hoarding.aspHOARDING
- It leads to artificial scarcity.
- It makes the price to go high.
- Non-availability of goods through artificial scarcity affects economic and material welfares of the people.
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