How does scarcity affect prices?

Prices rise or fall depending on the scarcity of a product or service and its relative demand. The less there is something that people want to produce or consume, the higher the price for that good or service will be. When a product or service is in abundance, on the contrary, the price for that product or service falls.In the market, this leads to resources that are very limited and it is desirable to command higher prices, and it is also true in the labor market, where relatively rare skills and abilities command high income.