If a resource is nonexhaustible, its supply curve in a single period is:
A)upward sloping.
B)perfectly elastic.
C)perfectly inelastic.
D)downward sloping.

Question

Quizplus · Accepted Answer

A nonexhaustible resource, by definition, is available in unlimited quantities in relation to its demand at a zero price. Therefore, its supply curve is perfectly elastic, meaning it is horizontal, reflecting that the quantity supplied can change without any change in price.

If a Resource Is Nonexhaustible, Its Supply Curve in a Single