Evaluate the implications of the basic 'economic problem'

The basic economic problem of scarcity is that there are limited resources of a product or a raw material that is required to manufacture goods. The implications of scarcity are that people will have to go without the product that is scarce. The concept of supply and demand affects the price of products. If a particular item is scarce and the demand for it is high, then the price will be high. On the other hand, if a resource is plentiful, the demand will be low and the price will be low as well.