Scarcity is the fundamental economic problem of having not enough resources to satisfy all of our wants and needs. It is the tension between limited resources and unlimited wants and creates a need for people to decide how to prioritize their spending. Identifying the cause of scarcity is essential in developing strategies to alleviate or avoid the issue entirely. To do this, one must first understand the concept of opportunity cost and understand that resources are limited but not necessarily scarce; rather, it is the lack of availability at a certain price point that creates a situation of scarcity. Additionally, identifying specific problems like market failure can help create targeted solutions to further alleviate scarcity. Ultimately, understanding scarcity and the causes behind it are key steps towards navigating the global economy.