Rising prices help control the process of resource depletion by
A)encouraging consumption and waste.
B)stimulating more efficient use of the depletable resource.
C)disincentivizing resource-saving innovation.
D)stimulating resource imports.

Question

Quizplus · Accepted Answer

Rising prices make the resource scarcer and more expensive, incentivizing producers and consumers to use the resource more efficiently and develop alternatives. This helps to slow down the process of depletion. Option A is incorrect because rising prices discourage consumption and waste, not encourage it. Option C is incorrect because rising prices make the market more attractive for innovative technologies that can provide alternatives to the scarce resource. Option D is incorrect because rising prices make it less likely that countries will want to import the scarce resource, due to high prices.

Rising Prices Help Control the Process of Resource Depletion by