Scarcity arises from the limited nature of society’s resources compared to unlimited needs and desires. Our resources are limited relative to our needs, and this is true not only for individuals but also for societies. Scarcity refers to the society’s inability to produce all the goods and services people desire to have because of deficiency of resources. Societies therefore must also decide on their priorities and manage their resources accordingly with the priorities they set.

As it can be understood the information given the term “scarcity” would be used to describe that situation. The correct answer is “A”.