Written by the Fiveable Content Team • Last updated September 2025
Verified for the 2026 exam
Verified for the 2026 exam•Written by the Fiveable Content Team • Last updated September 2025
Definition
Scarcity refers to the limited availability or shortage of resources (such as time, money, or goods) compared to unlimited wants or needs.
Related terms
Demand: Demand represents the quantity of a product or service that consumers are willing and able to purchase at various prices during a specific period.
Supply and Demand: Supply and demand describes the relationship between the availability (supply) of a product or service and consumers' desire (demand) for it.
Economic Incentives: Economic incentives are rewards or penalties designed to motivate individuals or groups to take specific economic actions.