Scarcity refers to the limited availability of resources to meet the unlimited wants and needs of individuals and businesses. This forces people to make choices about how to allocate resources efficiently. Scarcity impacts key resources like land, labor, capital, and entrepreneurship, driving decisions on production, consumption, and distribution in the economy. It is the core reason why trade-offs and opportunity costs exist in economic decision-making.
https://www.khanacademy.org/economics-finance-domain/ap-microeconomics/basic-economic-concepts/ap-economics-introduction/a/scarcity-article#:~:text=In%20microeconomics%2C%20scarcity%20refers%20to,how%20to%20allocate%20those%20resources. https://www.investopedia.com/terms/s/scarcity.asp