Resource scarcity is the abundance or shortage of critical organization resources in an organization's external environment. for example, the primary reason that flat-screen LCD televisions with lifelike pictures were initially six times more expensive per inch than regular TVs, and 25 percent more expensive than plasma TVs, was that there weren't enough LCD screen factories to meet demand. at $2 billion to $4 billion each, LCD factories were at first a scarce resource in this industry. but as sales of LCD TVs soared, more LCD factories were built to meet demand, so prices came down. so as the external environment changed, these resources became less scarce.