Which of the following lowers the current price of a nonrenewable natural resource?
A) An increase in the marginal revenue product of the resource
B) An increase in the interest rate
C) A decrease in the stock of the resource
D) An increase in the price of a substitute resource

Question

Quizplus · Accepted Answer

An increase in the interest rate lowers the current price of a nonrenewable natural resource because it increases the opportunity cost of holding the resource, leading owners to sell it sooner, increasing supply and lowering the current price.

Which of the Following Lowers the Current Price of a Nonrenewable