Other things constant, as the price of a resource increases,
A) the quantity of the resource demanded falls.
B) the quantity of the resource supplied falls.
C) the price of the product the resource helps to produce falls.
D) there is less of an incentive for users of the resource to find substitute resources.

Question

Quizplus · Accepted Answer

As the price of a resource increases, the cost of using that resource also increases, leading to a decrease in the quantity demanded by firms seeking to minimize costs.

Other Things Constant, as the Price of a Resource Increases