Final answer:
Scarcity is the economic condition where limited resources cannot fully satisfy unlimited wants, requiring choices and trade-offs. It is a central concept in economics that affects decisions on what to produce and consume. Even individuals with immense wealth face scarcity, as not all of their wants can be met.
Step-by-step explanation:
The condition that results from the inability of limited resources to satisfy unlimited wants is known as scarcity. Scarcity is a fundamental economic problem of having seemingly unlimited human wants in a world of limited resources. It means choices must be made about how resources are allocated, as the demand for goods and services exceeds the supply.
In economics, scarcity requires that people decide which goods and services to produce and consume, since not all wants and needs can be satisfied due to limited resources. This concept demonstrates that we must prioritize our desires and make decisions about what to forego in order to satisfy the most important of our wants and needs. Even for individuals with great wealth, such as Bill Gates and Warren Buffett, not all wants can be met due to the ever-present constraints of time and resource availability.