Concept:The economic problem exists because human wants are unlimited while the resources needed to satisfy them are limited.
Explanation:This condition is called scarcity.
Scarcity means that available resources, such as land, labour, capital, and entrepreneurship, are not enough to produce all the goods and services that people desire.
Because of scarcity, individuals and societies must make choices and allocate resources among competing uses.
Therefore, the economic problem occurs when needs and wants exceed the available supply, which matches the idea of scarcity relative to demand.
Answer:A. There is scarcity relative to demand.