A small town has a limited budget to improve its public transportation system, but residents have conflicting desires: some want expanded bus routes, while others prioritize upgrading existing buses. How should the town's council approach this situation considering the principles of scarcity?

Scarcity means that there are limited resources available to meet unlimited wants, which is exactly what the town is facing with its budget for public transportation. The town council needs to carefully consider how to allocate their funds to satisfy as many residents as possible while recognizing that they cannot do everything at once. They could hold community meetings to gather input and prioritize the needs based on the most pressing issues, like which option would benefit the most people or improve safety. For example, if many residents rely on public transportation to get to work, upgrading existing buses might be more urgent than expanding routes. By balancing the desires of the community with the available budget, the council can make a more informed decision that reflects the needs of the town.