Dependencies between markets reflect the fact that
A)you have limited resources.
B)society has limited resources.
C)resources are spread across different markets.
D)resources can be used across time.

Question

Quizplus · Accepted Answer

Dependencies between markets exist because resources are spread across different markets. For example, the price of corn is affected by not only the demand and supply of corn but also the demand and supply of other crops such as wheat and soybeans, which can be used as substitutes for corn. Therefore, the market for corn is dependent on the market for other crops. Similarly, the price of oil is affected by the demand and supply of not only oil itself but also alternative sources of energy such as natural gas and renewable energy. Therefore, the market for oil is dependent on the market for other sources of energy.

Dependencies Between Markets Reflect the Fact That