S scarcity implies that it is impossible to completely fulfill the unlimited human desire for goods and services with the limited resources available. This fundamental economic concept highlights the inherent limitation in resources when compared to human wants and needs.
Scarcity forces consumers and producers to make choices about how to allocate their limited resources. When a resource is scarce, its value generally increases, which can affect prices and purchasing behavior. Hence, the concept of scarcity is essential in understanding how markets function and how decisions are made in response to resource limitations.