Relative scarcity is when a resource is limited in supply, naturally. This has nothing to do with a company not creating enough supply but rather that there is only a certain amount of a resource available on the planet. However, relative scarcity also refers to supply in relation to demand. For example, oil. Though there is an abundance of oil right now, there is a finite amount available, which at some point, will not be able to meet demand. It is a relative scarcity. Absolute scarcity also refers to a resource being naturally limited but not in relation to demand. The best example of this would be time. Twenty-four hours in a day, seven days in a week, and 52 weeks in a year. Time is an absolute scarcity,