Even if demand for a resource grows over time, ever-rising prices of the resource that result from its growing scarcity still discourage consumption.

Question

Quizplus · Accepted Answer

When prices continue to rise, consumers tend to look for alternative resources or ways to reduce their usage of that resource, which ultimately slows down the consumption rate. This is because as the resource becomes scarcer, it becomes increasingly difficult and expensive to extract or produce, leading to higher costs for consumers. Therefore, even if demand grows over time, rising prices can discourage consumption.

Even If Demand for a Resource Grows Over Time, Ever-Rising