Scarcity is an age-old economic principle that refers to the limited availability of a good or resource. It’s based on the idea that when demand exceeds supply, prices tend to rise and resources become more limited in nature. In business terms, this means resources are finite, meaning they must be used wisely and efficiently. This can lead to increased competition among businesses, as they all compete to acquire a share of the limited market resources. Ultimately, scarcity forces businesses to make strategic decisions about how they use their available resources, ensuring they’re making best use of them while minimizing any potential future risks.