In 2009 the federal government in the USA decided to raise the cigarette tax from 69 cents to 1.01 dollars which applies to all tobacco products. The tax increase was originally issued to fund a child insurance program but the law was vetoed by president Bush although the tax increase on tobacco products remained. Previous tax increases in the cigarette tax reduced consumption by 4%, however these were lower increases and it is predicted by the Office of Smoking and Health Center that 1 million of the 45 million smokers will quit.

The United States has had its worst draught in half a century, the Agriculture Secretary Thomas Vilsack predicts that the corn yield is the lowest since 1995 and that prices of corn and soyabeans will rise in price by 20-25 percent unless there will be more rain. The Agricultural Department estimates that the general food prices with rise between 3 and 4 percent. In the Midwest the average production was reduced by 60 percent according to the Johnson County Farm Bureau.

In this case the supply on the curve would decrease and therefore the prices would increase and scarcity would also increase. Consumers would ration their consumption of food because it has increased in price. The article particularly states that the price of corn and soyabeans will increase significantly, therefore consumers might buy less goods from the corn and soyabean market and might consume in meat products because of the rise in food prices. The producer would eventually start supplying more when the draught is over for next years harvest, so there would be a shift in resource allocation through an increase investment in agriculture in the years after the draught due to the rise in price.

The demand of Fertilisers in India will drop by a fifth resulting in a demand of 45 million tonnes in 2012/ 2013 worth of fertilisers. One reason for this sharp decline in fertilisers is the cut in government subsidies to the industry which is creating a large fiscal distress for the state. Through the cuts in subsidies prices for fertilisers have increased and demand has been reduced. Another factor in the reduction of demand for fertilisers is the lack of rain meaning that investing in fertilisers is very risky for farmers in case it doesn't rain.

The demand on the curve would decrease, therefore the price would decrease and the scarcity would decrease because there would be more supply in comparison to the desires. Although there is a price decrease consumers would not raiton this good because it is mainly used by producers that need it, the farmers, who reduced their supply of food due to decreased subsidies and draught. Also, suppliers of the fertilisier would produce less because the profits gained from supplying fertilisers is reduced. Allocations to this resource would also decrease because suppliers produce less and might move their production to another good.