As a competitive economy uses its stocks of a depletable resource,
A)the resource price will fall by ever greater amounts each year.
B)the resource price will rise by ever greater amounts each year.
C)the use of the resource will increase at an increasing rate.
D)resource use will drop to zero.

Question

Quizplus · Accepted Answer

As a competitive economy uses its stocks of a depletable resource, the demand for the resource increases, causing its price to rise. As the resource becomes scarcer, its price will continue to rise, potentially resulting in a cycle of ever-increasing prices.

As a Competitive Economy Uses Its Stocks of a Depletable