The price of a depletable natural resource last year rose more than expected.The most likely explanation is that
A)interest rates fell.
B)an unexpected discovery of reserves was made.
C)the major suppliers formed a cartel.
D)price ceilings were established.

Question

Quizplus · Accepted Answer

When major suppliers of a depletable natural resource form a cartel, they can effectively control the supply of that resource on the market. By limiting supply, the cartel can cause prices to rise, especially if the demand remains constant or increases. This is a common strategy used by organizations like OPEC in the oil industry to influence oil prices globally. The other options (A, B, and D) would not typically result in a price rise more than expected; in fact, options A and B could potentially lead to lower prices, and D would cap prices, preventing them from rising.

The Price of a Depletable Natural Resource Last Year Rose