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  • Dad why is there only one Basketball?
  • Well son the town is going through a scarcity with them right now.
  • Whats that?
  • A scarcity is a object that is short in supply or not available.
  • So like when the supply and demand is down.
  • Well not exactly. Supply and demand are different than scarcity. 
  • Sooo... What are you saying?
  • What I'm saying is that supply and demand depend on the people.
  • Sooooooo...
  • If the demand is low than the supply is low.
  • You see the if the demand for an item is high than the supply will go up for that item.
  • Ok i get it know. 
  • So scarcity is a shortage in supply of an object. And Supply and demand depends on the people who buy it. If the demand is high the supply is high and vice versa.
  • Exactly.
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