An increase in the demand for a resource
A) will cause the price of that resource to fall.
B) may be the result of a decrease in the demand for products utilizing this resource.
C) will cause the price of the resource to fall by a smaller amount in the short run than in the long run.
D) will increase the price of the resource and, thereby, increase the incentive of potential suppliers to provide the resource in the future.

Question

Quizplus · Accepted Answer

An increase in demand for a resource typically leads to a higher price for that resource, which incentivizes suppliers to provide more of it in the future.

An Increase in the Demand for a Resource