What is the term used to describe the lack of availability of a commodity in relation to its demand?

The term that describes the lack of availability of a commodity relative to its demand is "scarcity." Scarcity occurs when the demand for a resource outstrips the supply available, leading to a situation where there isn't enough of the commodity to meet consumer needs or desires.

In economic terms, scarcity is a fundamental concept that reflects the limitations of resources in comparison to human wants. It underscores the necessity of making choices about how to allocate resources effectively because of this imbalance between supply and demand. Scarcity can drive prices up, as consumers may be willing to pay more for a limited resource, illustrating how market dynamics respond to the interplay of availability and demand.

The other terms, such as oversupply and surplus, refer to situations where the availability of a commodity exceeds demand, while deficiency typically relates to a lack of something but not necessarily in a direct demand-supply context.