The scarcity of resources is contextually subjective as the wants and needs are unlimited, but supplies are limited to the desires. The shortage of resources is an economic problem that needs to be allocated very efficiently to satisfy people's basic needs and new wishes. The fundamental and most used way for allocating scarce resources is the price system. The demand and supply for resources determine the price system. Fundamentally, limited resources will come up with the price tag in the economy, and people who can afford the price will get resources first. For example, a viral singer is coming to a city for a concert, and there are only 15000 seats available in the area where they will perform. Not this creates a scarcity problem because a singer is famous and he has many fans who want to go to a concert and see. However, now what determines who will get a seat is who pays for the ticket and can afford the price. Another method where scarcity resources can be allocated is authority. Authority method does not seem to be always fair, but it is fast while making decisions. Here the central authority, for example, local politicians or Government, decides the scarcity problems and serves the people.
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