Predictions of severe shortages due to impending natural resource depletion
A) are widely accepted by resource economists even though such predictions are a relatively new occurrence.
B) have been wrong in the past, but most resource economists believe that the threat of resource depletion is now far more severe than ever before.
C) are typically made without adequate recognition and consideration of resource price elasticities.
D) typically assume that price elasticities are greater than they really are.

Question

Quizplus · Accepted Answer

Predictions of severe shortages often fail to adequately consider how changes in resource prices can lead to changes in supply and demand, which is captured by price elasticities.

Predictions of Severe Shortages Due to Impending Natural Resource Depletion