Scarcity is an important idea in economics that affects how much of something is available and how much people want it. Let’s break it down:

1. What is Scarcity?

   • Scarcity means that there aren’t enough resources to satisfy everyone's wants.

2. Supply Side:

   • When resources are scarce, the supply curve moves to the left. This means there is less of that resource available.

3. Demand Side:

   • If there isn’t enough supply but a lot of people want it, prices usually go up. For example, if supply goes down by 10%, prices might go up by 20%.

4. Equilibrium:

   • When the supply decreases and demand stays high, a new balance, or equilibrium price, is created.

In short, scarcity leads to less supply, higher prices, and a new balance in the market.