In economics, scarcity is defined as a condition of limited resources and unlimited wants and needs, ie that society does not have sufficient resources to produce enough to fulfill subjective wants.

The study of economics, begins with an idea that people cannot have everything that they need and or want. The need is something like air, food, or shelter that is necessary for survival. A want is an item we desire but it's not essential to survival.

Living in a relatively wealthy country, many Americans may find it hard to understand the idea of scarcity. Store shelves are full with goods, goods are the psyhical objects such as shoes, shirts, and pants. We, the people, have access to many countless services, services are the actions or activites that one person performs for another. Services can be haircuts, dental checkups, and tutoring are examples of some. Yes, we see ads everywhere urging us to buy goods and services, but scarcity exists in all places, at all times.

But scarcity is not the same as a shortage, a shortage occurs when producers will not or can't offer goods or services at the current prices.