Resource markets are like any other market in that
A) the increase in quantity supplied in response to a higher price will generally be greater in the long run than in the short run.
B) the amount demanded of a resource is inversely related to its price.
C) higher prices encourage people to search for substitutes.
D) all of the above are correct.

Question

Quizplus · Accepted Answer

Resource markets, like other markets, exhibit similar behaviors: supply tends to be more elastic in the long run (A), demand is typically inversely related to price (B), and higher prices often lead to the search for substitutes (C).

Resource Markets Are Like Any Other Market in That