A resource has value and people are willing to pay for it most likely because the resource is scarce relative to the demand for it.

Core idea

In economics, a resource tends to have monetary value when:

  • It is limited in supply (scarce).
  • People want or need it (has utility).
  • Others can be excluded from using it unless they pay (it is excludable).

When those conditions hold, people are willing to give up money or other goods to obtain that resource, which is exactly what is meant by “having value” in a market sense.