At equilibrium, the yearly rate of increase in the price of a nonrenewable natural resource will

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At equilibrium, the yearly rate of increase in the price of a nonrenewable natural resource will equal the rate of return on investments of equivalent risk. This is because investors will seek to allocate their resources where they can get the best possible return for the level of risk they are willing to take. If the price of the resource did not increase at this rate, investors would move their capital to other investments that offer a better return, assuming similar risk levels.

At Equilibrium, the Yearly Rate of Increase in the Price