What does the concept of scarcity in economics primarily refer to?

The concept of scarcity in economics refers to the idea that resources are limited while human wants and needs are unlimited. This means that there isn’t enough of something, like money, time, or materials, to satisfy everyone’s desires completely. For example, if a farmer can only grow a certain amount of food, but many people want to buy that food, there will be competition among buyers. This situation forces people to make choices about how to use their limited resources, leading to trade-offs. Scarcity is important because it helps us understand why we need to prioritize our needs and make decisions about how to allocate resources effectively.