scarcity

Scarcity is a fundamental concept in economics, referring to the limited availability of resources relative to unlimited human wants and needs. This basic economic problem means that choices must be made about how to allocate these limited resources.12

There are different types of scarcity:
* Economic scarcity arises from a lack of infrastructure or poor management of existing resources.3
* Physical scarcity, or absolute scarcity, occurs when demand for water resources exceeds the available supply.3

The concept of scarcity is often summarized by the phrase "there is no such thing as a free lunch," highlighting that even seemingly free items have associated costs or trade-offs. Economic organization, therefore, involves devising systems, such as price systems, to manage these scarcities and achieve societal goals.1