Increasing scarcity of a resource causes new supplies to become more and more costly.

Question

Quizplus · Accepted Answer

This is the basic principle of supply and demand. When a resource becomes scarce, consumers are willing to pay more for it, which drives up the price. As the price increases, suppliers are incentivized to produce more of the resource, but this may require greater investments or more difficult extraction methods, making it more costly for them to do so. Therefore, new supplies become more and more costly as scarcity increases.

Increasing Scarcity of a Resource Causes New Supplies to Become