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In the Market for a Nonrenewable Natural Resources

Question 58

Multiple Choice
In the market for a nonrenewable natural resources,

In the market for a nonrenewable natural resources,


A) supply will decrease with decreases in the accessibility of the resource.
B) the supply curve is negatively sloped, reflecting the fact that there is a limited quantity available.
C) the equilibrium price is likely to decrease with reductions in the accessibility of the resource.
D) demand is a relationship identifying the willingness of resource owners to extract the resource from its natural state.
E) technological advances that lower the cost of extracting the resource have a tendency to increase the equilibrium price.

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