Scarcity economics is a branch of economics that examines how people respond to limited resources. It focuses on understanding the effects of resource constraints on decisions, such as how people prioritize their needs and desires in relation to the availability of specific goods and services. The basic principle of scarcity economics is that when there is a limited amount of something, it tends to be more valuable than something that is abundant. Therefore, decision-makers must consider both quantitative limitations as well as qualitative values when they are determining what is most important in any given situation.