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LORI

Economics is largely based around allocating scarce resources, right? So when things aren't scarce..

For instance, with digital distribution, you could copy an MP3 or e-book or whatever as much as you want and never "run out." How does this change traditional economics?
Ed:

It's the scarcity of composers and musicians we're talking about.....not the distribution media. You're trying to protect the artists, so that they will be able to produce more art. If you copy illegally, then there is no incentive to create.

Billarysdone:

Legally you cannot copy these items infinitely so in fact the supply is controlled by copy right laws. If you could copy music for free there would be no profit and the recording industry would go down the tubes. So to answer your question I would say all the traditional economic theories still apply. i.e. Supply and demand still govern the price.

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