Scarcity is the fundamental economic problem that arises because resources are limited while human wants are unlimited. Think of a pizza: you have one pizza but many friends want a slice. The pizza is scarce because there isn’t enough to satisfy everyone.
Imagine a school lunch box that can hold only 200 g of food. Students want pizza, pasta, and fruit. Because the box is limited, the school must decide how to allocate the space. The decision reflects scarcity: not everyone gets what they want.
Scarcity can be expressed as an inequality:
\$R < W\$
Where \$R\$ = available resources and \$W\$ = total wants.
You have 8 hours in a school day but want to study, play, and sleep. The 8 hours are scarce; you must choose how to allocate them. The trade‑off shows scarcity in everyday life.
Define Scarcity: Scarcity is the condition where resources are limited relative to wants.
Give an Example: Use a pizza, school lunch box, or time to illustrate scarcity.
Explain Opportunity Cost: Mention that choosing one option means forgoing another.
Use the Formula: \$R < W\$ to show scarcity mathematically.
| Resource | Scarce? | Why? |
|---|---|---|
| Water in a desert | Yes | Very limited supply. |
| Fresh air | No | Abundant everywhere. |