What is meant by the term 'scarcity' in economics?

Scarcity refers to the limited availability of a commodity, which may be in demand in the market.

The concept of scarcity was first given by Lionel Robbins. This explains an individual’s capacity to buy all or some of the commodities as per the available resources with that individual.

Robbins is famous for his definition of economics: "Economics is the science which studies human behaviour as a relationship between ends and scarce means which have alternative uses."

Scarcity is the fundamental economic problem of having seemingly unlimited human wants in a world of limited resources. It states that society has insufficient productive resources to fulfill all human wants and needs.