Scarcity

What is Scarcity?

Scarcity means there isn't enough of something for everyone who wants it. It's a basic problem in economics because people have unlimited wants but resources are limited. This means we always have to make choices about what to use our limited resources for.

Examples of Scarcity:

• There's only one slice of pizza left, but two friends want it. The pizza is scarce.
• A desert town has very little water. Water is a scarce resource there.
• During a toy shortage, many kids want a popular new toy, but stores only have a few. The toy is scarce.