According to the Hotelling Principle, the price of a nonrenewable resource is expected to

Question

Quizplus · Accepted Answer

The Hotelling Principle states that as a nonrenewable resource becomes scarcer, its price will rise at a rate equal to the interest rate, reflecting the increasing opportunity cost of using the resource in the present rather than saving it for future generations when it may be worth even more. Therefore, option C is the correct answer as the price of a nonrenewable resource is expected to rise at a rate equal to the interest rate.

According to the Hotelling Principle, the Price of a Nonrenewable