Economic goods are termed scarce goods when they are?

Economic goods are termed scarce goods when they are not available in sufficient quantities to satisfy all wants for them. This means that the demand for the goods exceeds the available supply, and as a result, people must make choices and trade-offs regarding how they allocate and use the available quantity of the goods. The concept of scarcity is a fundamental concept in economics because it forces people to make choices about how to allocate their limited resources to satisfy their unlimited wants and needs. Therefore, scarcity drives economic decision-making at both the individual and societal levels.