Scarcity exists when

The principles of economics govern how people satisfy their unlimited wants with their limited resources.  Some basic principles of economics include: Scarcity Resources are limited, and the allocation of resources is based on supply and demand. Supply and demand Consumers consider marginal costs, benefits, and incentives when making purchasing decisions. People face trade-offs Most decisions, especially economic ones, involve trading off one thing for another. Markets are usually a good way to organize economic activity In a market economy, decisions are made collectively by... Show more

The principles of economics govern how people satisfy their unlimited wants with their limited resources. 

Some basic principles of economics include:
Scarcity
Resources are limited, and the allocation of resources is based on supply and demand.
Supply and demand
Consumers consider marginal costs, benefits, and incentives when making purchasing decisions.
People face trade-offs
Most decisions, especially economic ones, involve trading off one thing for another.
Markets are usually a good way to organize economic activity
In a market economy, decisions are made collectively by millions of households and firms. 

Other principles of economics include: Cost and benefits, Incentives, Resource allocation, Marginal analysis, and Consumer choice.

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